NEW YORK (CNNMoney.com) - Treasury prices turned higher Tuesday, extending their rally, as a wave of economic uncertainty sent investors running toward safe haven investments.

The dollar strengthened against the euro and the yen.

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The 10-year Treasury note rose 2/32 to 100-22/32 to yield 5.03 percent, down from 5.04 percent late Monday.

The 30-year bond climbed 5/32 to 90-15/32, yielding 5.12, down from 5.13 on Monday. Bond prices and yields move in opposite directions.

The five-year note added one tick to yield 4.93, while the two-year note edged higher yielding 4.94.

Bonds were poised to end lower Tuesday on higher commodity prices, but jitters about the underlying strength of the economy sent stock market investors running for the exits and into government Treasurys just before the closing bell.

Investors had sought safety in Treasurys Monday, in the previous session as stock and commodity markets tumbled worldwide.

Comments by Federal Reserve Chairman Ben Bernanke to the Senate Banking Committee on financial literacy were largely overlooked by bond traders, as the central bank chief avoided discussing his outlook for the economy.

But Bernanke did repeat comments from the Fed's last policy meeting, noting the central bank might dole out more rate increases.

Treasury investors, who fear inflation since it erodes the value of the fixed-income investment, have been looking for clues about inflation and whether the Fed, the nation's central bank, will keep raising interest rates.

Bonds rallied Monday after global markets stumbled on fears that rising rates and energy prices would spark a slowdown in economic growth worldwide. But the rally faded after Dallas Federal Reserve Bank President Richard Fisher said inflation is "running too high for comfort."

Monday's rally put the 10-year yield back near 5 percent, flattening the bond market's "yield curve," meaning some issues with shorter maturities are yielding almost as much as longer maturities. The yield curve was inverted for part of last winter and then reverted to a more normal upward slope in the spring.

In the past an inverted curve has signaled a recession, though economists say it's less of a reliable indicator than it once was. Most economists are forecasting slower economic growth in the second half of the year.

With no major economic reports delivered so far this week, investors are focused on Wednesday's durable goods and new home sales reports. But the biggest report of the week will be the April personal income and consumption report.

In currency trading, the dollar gained against the euro and the yen.

The euro bought $1.2832, down from $1.2868 late in New York Monday. The dollar bought ¥111.76, down from ¥111.50 the previous session.

--from staff and wire reports

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