NEW YORK (CNN/Money) - Treasury prices slipped Wednesday following the second installment of a three-part refunding session, showing a lack of interest by foreign central banks.

The dollar held near two-year highs against the euro and the yen.

The benchmark 10-year note fell 22/32 to 96-28/32 to yield 4.65 percent, up from 4.57 percent in the previous session. The 30-year bond lost 1-11/32 to 107-22/32 to yield 4.84 percent, up from 4.75 percent late Tuesday. Bond prices and yields move in opposite directions.

In shorter-dated debt, the two-year note fell four ticks, yielding 4.49 percent. The five-year note was down 13/32, yielding 4.57 percent.

Overall demand was solid for the second leg of the government's three-part quarterly refunding, a $13 billion sale in new five-year notes, but interest from indirect bidders, a category that includes foreign central banks, was scant.

"Maybe we're finally getting to the point where the foreigners are demanding really high compensation for our budget and current account deficits," Mary Ann Hurley, a senior Treasury market trader at D.A. Davidson & Co. told Reuters.

Besides Wednesday's $18 billion sale of three-year notes, the government sold $18 billion worth of three-year Treasuries on Tuesday and plans to offer $13 billion in 10-year notes on Thursday.

Cleveland Fed President Sandra Pianalto was one of three Federal Reserve officials scheduled to deliver speeches Wednesday but avoided touching on the U.S. economic outlook.

Following a speech to the Strongsville Chamber of Commerce, Pianalto said that the Federal Reserve has not set a goal for its benchmark interest rate, adding that economic conditions will determine the central bank's decisions.

Philadelphia Fed President Anthony Santomero did not deliver any comments on the U.S. economy after a conference on China this morning. St. Louis Fed President William Poole is scheduled to speak at 4:30 p.m. CT.

The Fed has said it is committed to stamping out inflation risks by raising interest rates.

Inflation hurts bonds, as it erodes the value of the fixed-income investment. However, rising interest rates generally help the dollar, as they make dollar-denominated securities more attractive to foreign investors.

In currency trading, the dollar held near two-year highs against the euro and the yen. The euro bought $1.1763, down slightly from $1.1773 in the previous session. The dollar bought ¥117.58, up from ¥117.36 late Tuesday.

-- from staff and wire reports

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