Policy-makers should consider expanding the use of central clearing in core government bond markets, officials at the International Monetary Fund have urged.

In a blog post published on May 21, Tobias Adrian, Kleopatra Nikolaou and Jason Wu argue that rises in bond yields resulting from issues in market functioning rather than fundamental factors could undermine the “efficient allocation of capital”.

Citing findings from the IMF’s latest financial stability report, the authors say the functioning