Global rate-hike wave threatens bond diversification

Two-thirds of swap markets now pricing rate hikes across Japan, Canada, UK, euro zone, and South Korea. OECD inflation at two-year high from oil, fiscal, and AI pressures. Fidelity's Efstathopoulos warns bonds failing as diversifiers, challenging the Fed-centric view. This global tightening wave could compound US yield pressure and force reassessment of cross-market exposures.