Sticky Inflation, Fiscal Expansion, and AI Boom Triple Squeeze: Global Bonds' Safe-Haven Aura Dims

Global bond markets are undergoing a structural upheaval. The triple pressure of sticky inflation, fiscal expansion, and an AI investment boom drives two-thirds of 32 swap markets to price in rate hikes, with a combined near-400 basis points of hikes expected over the next year across seven major markets. South Korean bonds have fallen nearly 9% this year, and long-end U.S. Treasury yields hit multi-decade highs—as central banks are forced to tighten in sync, the safe-haven myth of bonds is unraveling.