NEW YORK (CNN/Money) - Treasury prices skidded Wednesday, with yields on the ten-year note spiking to the highest levels since July, following a "Beige Book" that indicated the U.S. economy continued to expand in January and February.

The benchmark 10-year note lost 1-1/32 of a point to 95-25/42 to yield 4.53 percent, up from 4.38 percent late Tuesday. The 30-year sank 1-29/32 to 107-30/32 to yield 4.83 percent, up from 4.70 percent late Tuesday. Bond prices and yields move in opposite directions.

The five-year note lost 13/32 of a point to yield 4.15 percent, while the two-year note lost two ticks to yield 3.66 percent.

The Federal Reserve's "Beige Book" indicated that economic activity continued to expand at a moderate pace in late January and February, with few signs of inflation despite rising production costs.

Speculation that solid economic growth could lead to more aggressive rate hikes incited the selloff.

"You are seeing a major price correction, and it is being blamed on anything you see, including ... inflationary pressures," Kathleen Stephansen, director of global economics at Credit Suisse First Boston in New York, told Reuters.

"If you are concerned about inflationary pressures you can dig into whatever the Beige Book is telling you and that is enough to say 'We are going to get more inflationary pressures down the road,"' she said.

"This is obviously a continuation of what we've been seeing, which is strong economic growth and inflation expectations," Michael Darda, chief economist at MKM Partners, told CNN/Money.

In currency trading, the dollar fell against the euro and the yen.

The euro bought $1.3393 Wednesday, up from $1.3346 late Tuesday. The dollar traded at ¥103.97, down from ¥104.71 late Tuesday.