IMF: jump in bond yields could trigger bank collapse

The IMF stated the need to strengthen control over banks after one of the largest sales of U.S. government bonds in the history of observation, investing.com reports with reference to Business Insider. According to the representative of the fund Tobias Adrian, rapid movements in the market can shake the stability of financial organizations, so they should strengthen control over them. As an example, he cited the spring collapse of SVB, which had to sell the bonds it had bought earlier at a price far below the purchase price - this led to significant losses, outflow of client funds and collapse.

Due to the sharp fall in the value of long-dated trijeris that occurred amid the sell-off, their yields hit a 16-year high, according to rg.ru. Recently, several members of the Federal Reserve said that this could trigger a tightening of financial conditions, so the regulator is considering reducing the number of further interest rate hikes, investing.com wrote.