The International Monetary Fund (IMF) warned Tuesday that government bond yields could rise in a "disorderly" fashion, citing rising inflation, mounting debt, and exponentially increasing AI-related borrowings that pressure sovereign bond markets. The fund noted that high debt loads and rollover risks make the bond market susceptible to fiscal and inflation shocks, with severe potential impact on asset values, including AI-related assets, and collateral. While liquidity in the U.S., Europe, and the U.K. remains stable, Japan's government bond market liquidity has deteriorated. The IMF urged debt managers to lengthen maturities.