With a good amount of fear in the markets, volatility is spiking, we noted just last week.

Even though markets have recovered some lost ground, they’re setting up for another pullback.

All thanks to bond yields, which just hit a high of 1.545% on fears the Federal Reserve will curb its emergency bond-buying stimulus shortly. Also weighing on the market, we could see a government shutdown if Congress fails to approve funding by this Friday. We could also see a U.S. default if the debt ceiling isn’t raised either.

According to Treasury Secretary Janet Yellen, the U.S. won’t be able to pay its bills if lawmakers don’t raise the debt ceiling by October 18.

“At that point, we expect Treasury would be left with very limited resources that would be depleted quickly. It is uncertain whether we could continue to meet all the nation’s commitments after that date,” she said, as quoted by The Wall Street Journal.

That’s all creating a good deal of uncertainty and fear in the market.