Treasury markets faced significant pressure as the 10-Year yield surged to 5.13%, its highest level since July 2007. Stronger-than-expected PMI data and rising oil prices initiated the move, while weaker Treasury auctions pointing to waning demand accelerated the selloff. The 10-Year yield closed up over 14 bps for the session and has now gained 35 bps in September alone. Rising yields also drove an increase in market volatility, with the CVOL Index closing at its highest level since April. Market participants now look ahead to Thursday's initial jobless claims data, new home sales figures, and a $44 billion 7-Year Treasury auction.