10-year German bund yields hit 3% for the first time since 2011

That is the first time since 2011 that 10-year yields in Germany have come in above 3%. This is a spillover from the major breakout in Treasury yields, as the bond market selling goes global. As higher yields continue to reverberate, the pain trade is definitely on right now and we are seeing risk get hit hard ahead of the open in Europe.

S&P 500 futures are now down another 0.6% after the selloff yesterday and it's shaping up to be a rather ugly start to Q4 for equities. And it won't get much better until the rout in bonds stop one way or another.