Bonds are being pummeled as investors fear interest rates will stay higher for longer because of high inflation. That will raise borrowing costs across the economy even more.

The bond markets are being hit hard by the Fed's aggressive rate hikes and recent events including a downgrade of the country's ratings. These are three ways in which that could impact the U.S.

Amid heightened uncertainty about the global economy, all three U.S. indexes are in a bear market as the third quarter comes to a close.

Russia owes interest payments on two dollar-denominated bonds on Wednesday. If it doesn't pay, the country could go into default.