The U.S. Treasury market experienced its worst single-day sell-off in nearly 18 months on Wednesday, with the 10-year Treasury yield surging approximately 14 basis points to close at 5.113%, breaking above 5% for the first time since 2007. This sell-off was triggered by a confluence of negative factors, including strong PMI data, escalating tensions in the Middle East, hawkish statements from Federal Reserve officials, and weak results from the 5-year Treasury auction. Market bets on another Federal Reserve rate hike in October have sharply increased, with futures market pricing indicating a 68% probability of a hike. The 30-year mortgage rate has surpassed 7%, and the stock market simultaneously declined, with the S&P 500 closing down approximately 0.8%.