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IMF warns of disorderly bond yield spikes amid AI boom and debt concerns
The IMF’s Global Financial Stability Report cautions that rising debt, inflation, and AI‑related borrowing could cause a sharp, disorderly rise in sovereign bond yields, threatening asset values. While AI investment is bolstering the global economy, the IMF notes resilience is nearing its limits and forecasts a possible 20% drop in U.S. equities and a 1.1% lower global growth by 2028 if AI gains stall. Singapore’s predictable market is highlighted by DBS CEO Tan Su Shan as a stable haven. Additional notes include Asian tech stock declines, China’s memory chip progress, and Trump’s temporary easing of Russian diesel export restrictions.