NEW YORK (CNNMoney.com) - An uptick in consumer prices and comments from a Federal Reserve policy-maker rattled bond investors Wednesday, sending Treasury prices sharply lower and pushing the yield on the benchmark 10-year note back above 5 percent.

The dollar fell against the euro and edged lower versus the yen.

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The 10-year Treasury sank 10/32 to 95-29/32 to yield 5.03 percent, up from 4.98 late Tuesday. The benchmark yield surpassed the 5 percent mark for the first time since June 2002 last Thursday. Bond prices and yields move in opposite directions.

The benchmark Treasury yield has jumped nearly three quarters of a percentage point in the past three months as investors have bet the Fed might raise short-term rates more than originally expected.

The 30-year bond fell 24/32 to 90-13/32 to yield 5.13 percent, up from 5.07 the previous session. Longer-dated Treasuries tend to respond to inflation expectations for the economy.

The five-year note slipped 4/32 to yield 4.90 percent. The two-year note fell one tick, yielding 4.86 percent.

Treasuries fell in the early going after the government said the Consumer Price Index rose 0.4 percent in March, in line with estimates of economists surveyed by Briefing.com.

But the so-called core CPI, which strips out volatile food and energy prices, increased more than expected. The closely watched measure climbed 0.3 percent during the month, compared to a 0.1 percent increase in February. Economists had forecast only a 0.2 percent gain in the core CPI in the most recent period.

"The data will keep the Fed on edge and provides fodder for the Fed hawks," Alan Ruskin, global markets strategist at RBS Greenwich, told Reuters.

Bond traders hate inflation since it erodes the value of their fixed-interest paying investments.

Treasuries extended their losses later in the session when San Francisco Fed President Janet Yellen said she may be seeing some pass-through of energy and commodity prices into core inflation measures.

In currency trading, the euro bought $1.2386, up from $1.2319 late Tuesday, while the dollar bought ¥117.11, down from ¥117.33 the previous session.

--from staff and wire reports

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Long-term bond rates are finally rising. How far will they go? Click here for more.