IMF Warns AI-Driven Selloff and Surging Bond Yields Threaten Financial Markets

The IMF's framing matters because it links two risks that have largely been treated separately: stretched AI-linked valuations and a bond market where risks have built since April. The transmission channel is the notable part — a correction concentrated in AI names would not stay contained if it forces broader de-risking, and rising yields tighten conditions across all risk assets, including tokenized real-world assets that compete with fixed income for allocator attention. Whether the bond-market stress the fund flags actually materializes, or remains a warning, is the open question.