- The IMF warned of bond market risks amid fears of a Silicon Valley Bank repeat.
- Stricter lender scrutiny is necessary, the IMF’s Tobias Adrian told the Financial Times.
- Sharp rises in bond yields could pose a risk to banking portfolios, as happened earlier this year.
The sharp rise in Treasury bond yields provoked warnings from the International Monetary Fund, which called on regulators to increase their financial markets oversight.
“When you see large moves that are very fast, it has more potential to trigger instability, because market participants have to reposition, and there are these accelerators in the system that could kick in,” Tobias Adrian, who heads the IMF’s monetary and capital markets department, told the Financial Times.
The warning comes after Treasury yields hit highs not seen in nearly two decades, amid one of history’s most extreme US bond sell-offs.