2017.07.2522:15:00UTC+00Yields Surge as Stocks, Commodities Rally

Treasury prices fell, driving up yields as a rally in commodities prices helped bolster expectations regarding inflation, which have been hit by the lackluster economic data.

The selling of government debt comes ahead of the end of the Federal Reserve's two-day policy meeting, where central bankers could set up the stage for the impending normalization of the central bank's balance sheet.

Yield on the 10-year benchmark note rose 7.5 basis points to 2.328 percent. Meanwhile, the 30-year bond yield advanced 7.9 basis points to 2.912 percent, as both securities marked their biggest one-day increase since March 1. The two-year note yield recorded a modest gain of 2.5 basis point 1.390 percent.

Long-dated yields steadily rose throughout the day after a jump in stocks and commodities stoking the risk-appetite, prompting investors to flock out of safe-havens. Crude prices surged 3.34 percent to $47.89 per barrel, denoting the best single-session dollar increase since December 2016, after Saudi Arabia, Nigeria pledged to reduce its oil exports and limit production.