IMF’s Gopinath Warns Global Debt Surge Risks Bond-Market Strain

International Monetary Fund First Deputy Managing Director Gita Gopinath cautioned that global debt has risen to levels she described as "overextended," leaving bond markets in a fragile position. She urged governments to “tread carefully,” warning that complacency over borrowing could amplify financial strain if interest rates rise or growth slows. Speaking in an interview broadcast on Thursday, Gopinath said the buildup in public and private borrowing since the pandemic has increased the vulnerability of financial markets and limited policymakers’ room to respond to future shocks. She added that careful fiscal management and coordination with central banks are needed to avoid abrupt market corrections.