IMF warns US rate hike could trigger 'super taper tantrum'

The International Monetary Fund (IMF) has warned global markets could be hit by turmoil worse than the 2013 'taper tantrum' when interest rates rise.

Speaking to the Financial Times, the IMF's director of monetary and capital markets Jose Vinals described the potential turmoil as a "super taper tantrum". The IMF noted a 100 basis point jump in 10-year US treasury yields is possible, causing a shockwave which could have an especially significant impact on emerging markets. The consensus expectation is for the US Federal Reserve to raise rates in the second half of this year, the first increase in almost a decade, with UK rates set to rise shortly afterwards. The original taper tantrum occured in 2013 when then Federal Reserve ch...