Around 7:45 a.m. ET, Dow Jones Industrial Average futures dropped 150 points, indicating a decline of 102.78 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a lower open.
The benchmark 10-year Treasury note yield rose to 3.25 percent and hit its highest level since 2011. The longer-term 30-year bond yield also reached its highest mark since 2014.
Investors have been grappling with higher interest rates after the release of strong economic data last week. Comments from the top Federal Reserve official also boosted rates. Fed Chairman Jerome Powell said monetary policy was "a long way" from neutral, indicating more rate hikes are coming.
Higher rates and expectations of tighter monetary policy are a drag on stock markets, given that they cap companies' profits, thus restricting possible dividends to investors and higher pay for the employees.
The S&P 500 and the Nasdaq Composite entered Tuesday riding a three-day losing streak, while the Dow posted a small gain in the previous session.