IMF: US faces moderate risk of falling demand for government bonds

The US faces moderate risk of falling external demand for its government bonds, Report informs referring to Fakti.bg.

This assessment is given in the published report of the International Monetary Fund (IMF) on the foreign economic indicators of the countries.

Experts of the fund note several positive trends regarding the investment attractiveness of the US. “The risk to financial stability, however, could manifest itself in the form of an unexpected decline in external demand for US 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 US dollar as a reserve currency,” the IMF believes. “The probability of such a risk materializing is further reduced by strong institutions, a predictable political system and a variety of attractive investment opportunities,” say the fund's experts.

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