Global markets are bracing for further policy tightening, putting pressure on bond markets, as investors debate whether and when the Federal Reserve will raise interest rates. Traders expect borrowing costs in Japan, Canada, the UK, and the Eurozone to rise faster than in the US over the next year, according to Bloomberg data. Two-thirds of the 32 swap markets tracked by Bloomberg are pricing in rate hikes, with South Korea expecting an increase of over 100 basis points.