NEW YORK (CNNMoney.com) - Bond prices split Wednesday as the yield on the 10-year surpassed that of two-year for the first time since January.

The benchmark 10-year Treasury note slipped 2/32 to 98-04/32, pushing its yield to 4.74 percent, up from 4.73 percent late Tuesday.

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The 30-year bond fell 7/32 to 96-12/32, yielding 4.73 percent, up from 4.71 percent the previous session. Bond prices and yields move in opposite directions.

The five-year note was relatively unchanged, yielding 4.75 percent, and the two-year note was up two ticks, yielding 4.73 percent.

Bond yields, which normally increase from shorter- to longer-term debt, have been closely watched by investors since they inverted in December for the first time in five years.

The nation's last two recessions were each preceded by inversions of the curve, which has also signaled economic slowdowns but not outright recessions in the past.

Economists said the latest inversion may signal a slowdown in economic growth later this year, but probably not a recession.

The market now is betting that long-term rates will rise more quickly than short-term rates -- a yield-curve steepener.

Separately, St. Louis Federal Reserve President William Poole said Wednesday that the housing market will cool and the Fed will keep inflation in check, further raising the specter of higher interest rates.

Bond prices sank Friday and Monday and had a volatile day Tuesday after several central bankers said the economy is robust and inflation remains a concern. They suggested that more hikes in interest rates are on the horizon.

Inflation hurts bonds as it erodes the value of the fixed interest-paying investment.

In currency trading, the dollar fell slightly as traders awaited a decision by the Bank of Japan to raise interest rates.

The dollar bought ¥117.89 Wednesday, down slightly from ¥117.95 late Tuesday. The euro bought $1.1920, up from $1.1879 in the previous session.

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