NEW YORK (CNNMoney.com) - Bond prices tumbled across the board Tuesday, sending the 10-year yield back above 5 percent, as investors digested reports pointing to the underlying strength of the economy.

The dollar recovered slightly after declining sharply in recent sessions and was mixed against the euro and the yen.

The 10-year Treasury note sank 23/32 to 95-18/32 to yield 5.08 percent, up from 4.98 late Monday. Bond prices and yields move in opposite directions.

The benchmark yield topped 5 percent on April 13 for the first time since June 2002. The yield on the 10-year note has jumped nearly three quarters of a percentage point in the past three months as investors bet that inflation will pick up - and that the Federal Reserve will raise short-term rates more than originally expected.

The 30-year bond lost 1-6/32 to 89-29/32 to yield 5.16 percent, up from 5.06 the previous session.

The five-year note fell 11/32 to yield 4.98 percent, while the two-year note declined 3/32, yielding 4.95 percent.

The Conference Board said its index of consumer sentiment climbed to a four-year high in April. The index rose to 109.6 - its highest since May 2002 - from an upwardly revised March reading of 107.5. Economists surveyed by Briefing.com had forecast that the index would slip to 106.4.

The survey showed Americans were more upbeat about the job market and that rising gas prices didn't dampen household spending in the month. It is sometimes seen as an indicator of consumer spending, which fuels about two-thirds of the economy. (Full story.)

Investors also took in a report that showed existing home sales unexpectedly rose in March. The National Association of Realtors said existing home sales rose to a 6.92 million unit rate, up from the 6.90 million unit pace posted in February. Economists had expected a decline. (Full story.)

The reports sent bond prices spiraling as traders bet the strength in consumer spending and the real estate market would keep fueling economic growth and influence the Fed to prolong its 21-month rate hike campaign.

The sell-off was "broad based because the world is growing strongly and our economy is showing signs of strength," Lundy Wright, head of Treasuries and agency trading at Nomura Securities International, told Reuters.

Economists widely expect the central bank's policy-makers to raise their short-term rate target to 5 percent next month but whether they'll keep boosting rates after that meeting remains unclear.

Looking ahead, bond traders will focus on Fed Chairman Ben Bernanke's testimony Thursday before a Congressional hearing on the economic outlook. They'll also take in the first look at first-quarter gross domestic product, the broadest measure of the nation's economic activity, due Friday.

In currency trading, the dollar drifted against the euro but rose against the yen. The greenback fell sharply Monday on growing concerns about the unsustainability of the U.S. trade deficit.

In currency trading, the euro bought $1.2426, up from $1.2403 late Monday, while the dollar bought ¥114.83, up from ¥114.46 the previous session.

--from staff and wire reports

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