NEW YORK (CNNMoney.com) - Bonds prices slipped Thursday, sending the yield on the 10-year note to a multi-year high, as investors grappled with a government debt auction and fresh economic reports on the retail sector and unemployment claims.

The dollar was mixed against the euro and the yen.

The 10-year Treasury note fell 17/32 to 94-31/32 to yield 5.15 percent, up from 5.13 late Wednesday. The yield on benchmark had climbed as high as 5.18 during the session, its highest level since May of 2002.

The 30-year bond declined 16/32 to 89, yielding 5.23 percent, up from 5.19 in the previous session. Bond prices and yields move in opposite directions.

The five-year note slipped 2/32 to yield 5.03 percent, while the two-year note edged lower yielding 4.99 percent.

While taking stock of Wednesday's decision by the Federal Reserve to raise interest rates, investors focused their attention on a $13 billion government auction of new 10-year notes, which attracted weaker-than-expected interest from investors.

"Foreign participation was decent but it certainly was not great," Mary Ann Hurley, vice president of fixed income trading at D.A. Davidson in Seattle told CNNMoney.com regarding the government debt auction.

Earlier in the session, investors digested the March retail sales report at U.S. chain stores, which climbed by a weaker-than-expected 0.5 percent last month, indicating that pain at the gas pump may be starting to hit consumer spending. Analysts had expected a 0.8 percent gain. (Full story)

Initial jobless claims came in at 324,000 in the week ended May 6, above the 315,000 expected by Wall Street analysts. (Full story)

Investors are now trying to determine whether the Federal Reserve will raise rates when it meets again in June. On Wednesday, central bank policy makers raised the target for the Fed's key short-term interest rate to 5 percent, as expected. It was the 16th straight hike since June 2004.

But the central bank did not give a firm answer as to whether its monetary-tightening campaign would continue, and said that decision will ultimately depend on how the economy is faring.

The central bank and investors will have plenty of reports to pore over next week including both producer and consumer price indexes, as well as April housing starts.

In currency trading, the dollar was mixed against the euro and the yen.

The euro bought $1.2842, up from $1.2809 late Tuesday. The dollar traded at ¥110.54, up from ¥110.19 in the previous session.

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