The US faces a moderate risk of a decline in demand for its government bonds – 2024-07-16 15:09:10

by times news cr

2024-07-16 15:09:10

The United States faces a moderate risk of a decline in external demand for its government bonds. This assessment is given in the published report of the International Monetary Fund (IMF) on the external economic indicators of countries, Day.Az reports with reference to TASS.

The fund’s experts note a number of positive trends in terms of the investment attractiveness of the United States. “At the same time, the risk to financial stability may manifest itself in the form of an unexpected decline in external demand for American fixed-income securities, which are the main component of the country’s external liabilities,” the report emphasizes.

“This risk, which could materialize, for example, due to a failure to restore fiscal sustainability, remains moderate given the dominant status of the U.S. dollar as a reserve currency,” the IMF believes. “Strong institutions, a predictable political system, and a variety of attractive investment opportunities further reduce the likelihood of such a risk materializing,” the fund’s experts believe.

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