NEW YORK (CNN/Money) - Treasuries were mixed Wednesday after Federal Reserve Chairman Alan Greenspan cited concerns about the budget deficit and the rising costs of Social Security, but bypassed talk of inflation or any hints of faster rate hikes.

The dollar rose early in the session, but gave back gains by late afternoon.

The benchmark 10-year note fell 3/32 of a point to 96-30/32 to yield 4.38 percent, up slightly from 4.37 percent late Tuesday. The 10-year is at its highest yield since Dec. 2, when the yield reached 4.42 percent during the session and ended the day at 4.41 percent in New York, according to Reuters.

The 30-year bond slumped 14/32 of a point to 109-13/32 to yield 4.74, up from 4.72 percent late Tuesday. Bond prices and yields move in opposite directions.

The five-year note edged up 1/32 of a point to yield 4.00 percent, while the two-year note also edged slightly higher to yield 3.57 percent.

The yield on the 10-year note hit 4.40 percent, a 2005 high, earlier in the day as prices fell on speculation that Greenspan would mention inflation and indicate faster interest rate hikes.

In testimony to the House Budget Committee, Greenspan said the economy is growing at a reasonably good pace but the country must tackle budget deficits by restraining spending.

"It's the same tone that he took in his testimony two weeks ago," Christopher Low, chief economist at FTN Financial, told Reuters.

Traders, however, were already positioning themselves for Friday's employment report, with some speculating on a possible strong number.

Wall Street economists expected the economy created around 220,000 jobs last month, up from 146,000 in January, according to a Reuters poll.

In currency trading, the dollar lost its earlier gains after Greenspan's comments.

The euro bought $1.3137 Wednesday, up from $1.3128 late Tuesday. The dollar bought ¥104.75, relatively unchanged from late Tuesday.