The global bond selloff is reaching dangerous levels, and it’s threatening the stock market.

The 30-year Treasury yield hit 5.447% early Thursday—its highest level since 2004, while the 10-year yield is at its highest since 2007. Those stats are slightly terrifying.

Stocks are braced for another difficult day and potentially a difficult end to the year. Energy is the only bright spot, and that’s as oil prices are rising.

The market is increasingly confident of another rate increase in October—the odds rose to 75% on CME’s FedWatch tool early Thursday. New York Fed President John Williams said it was “reasonable” to expect another hike this year at a conference in London. But by the time the U.S. woke up, the market was firmly pricing in two hikes. 

Highflying tech stocks typically get hit amid higher rate expectations, and Thursday looks no different. You wouldn’t know that Meta had just unveiled a potentially pivotal AI device to support its popular Muse AI agent. 

Maybe the bond pressure will break the impasse between the U.S. and Iran—if it doesn’t it might break the stock market.

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