IMF cites AI slowdown, spiking yields as looming global market risks

The IMF said its stress test models showed ​banks' capital cushions remained robust even in a hypothetical downturn triggered by an AI slowdown and bond market fragility.

RISING YIELDS The IMF said bond market risks have worsened since its April report, as higher energy prices have driven government bond yields up.

Should the momentum slow, the IMF noted growing leverage in the AI ​sector could exacerbate any shock by triggering forced selling and higher volatility.