By Akane Otani

Investors continued selling Treasury bonds Wednesday, sending the yield on the benchmark 10-year note to fresh multiyear highs above 3%.

The yield on the 10-year note, used as a reference for everything from auto loans to student debt to mortgage rates, settled at 3.026%--the highest closing level since Dec. 31, 2013. Yields had settled at 2.983% Tuesday after piercing 3% in intraday trade.

The latest bout of bond selling has come in part as rallying crude oil prices, as well as signs that Federal Reserve officials are increasingly confident about the economy's trajectory, have spurred fresh investor bets on growth and inflation.

The yield on the 10-year note, which rises as bond prices fall, has notched six consecutive advances.

Now, investors are asking how much further bond yields will rise -- and whether selling in the bond market could spill over into the stock market, much like what happened in February. Then, investors fearing a faster-than-expected pickup in inflation could force the Federal Reserve to accelerate its pace of interest-rate increases shed their stockholdings. Stocks have struggled for traction since, with indexes from Asia to Europe to New York wobbling Wednesday.

A jump in borrowing costs could threaten to crimp spending among consumers and corporations -- although some investors say that could act as a sort of brake on the economy, ultimately capping the rise in bond yields.

Many also still believe the economy is on strong footing, and that bond yields haven't climbed high enough to, by themselves, derail the nine-year stock rally.

The economic picture "is filled with solid GDP metrics, strong consumer sentiment and steady jobs numbers," said Mike Loewengart, vice president of investment strategy at E*Trade.

Investors may see the recent selling in the bond market as an opportunity to scoop up Treasurys at a discount, Mr. Loewengart added.

Write to Akane Otani at akane.otani@wsj.com

(END) Dow Jones Newswires

April 25, 2018 16:00 ET (20:00 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.