The global bond selloff continues into September, raising borrowing costs for governments like Japan and Germany and pressuring U.S. stocks today. The yield on Japanese 10-year government bonds reached 3%, its highest level since 1996. The Nikkei reported that Japan's next budget could be the largest ever, heightening concerns over swelling fiscal deficits that have plagued bond markets this summer. Treasury Secretary Scott Bessent told CNBC he expects Tokyo to take measures to strengthen the yen, stoking expectations of an interest-rate hike.

Bond yields also climbed to multiyear highs in Germany and France. Futures suggest the U.S. stock market will open lower after a downbeat session in Asia, where fast-fashion company Shein made a subdued stock-market debut.

Oil prices continued to climb after the U.S. and Iranian militaries clashed over the weekend for the first time in weeks.