A wave of selling in US government bonds triggered a broad asset retreat on Wednesday, driving Bitcoin below $84,000 and clipping the S&P 500 by 0.8%. The volatility followed a September flash PMI report that showed private sector business activity expanding at the fastest rate in more than five years, with the composite index hitting 58.4 and manufacturing rising to 57.0.

The benchmark 10-year Treasury yield climbed approximately 15 basis points to close at 5.11%, its highest level since July 2007. Other maturities rose in tandem, with the 5-year yield topping 5% for the first time in nearly two decades and the 2-year hitting 4.90%. Market expectations for a Federal Reserve interest rate hike in October jumped to roughly 70% as oil prices climbed above $90 per barrel, while 30-year fixed mortgage rates surged to between 7.12% and 7.25%.