NEW YORK (CNNMoney.com) - Bond prices fell Wednesday as investors took stock of a pair of economic reports, a sharp decline in commodities and a waffling stock market.

The dollar gained against the euro and the yen.

The details See more

The benchmark 10-year note slipped 7/32 to 100-19/32 to yield 5.04 percent, up from 5.03 percent on Tuesday. The yield on the 10-year note fell as low as 4.99 percent during the session, inverting the yield curve. An inverted curve occurs when yields on shorter-term bonds are higher than those of Treasury securities with longer maturities.

In the past an inverted curve has signaled a recession, though economists say it's less of a reliable indicator than it once was.

The 30-year bond gave up early gains as well and fell 12/32 to 90-14/32, yielding 5.13, up from 5.12 on late Monday. Bond prices and yields move in opposite directions.

The five-year note fell three ticks to yield 4.94, while the two-year note edged lower to yield 4.94.

Treasurys had rallied earlier in the session after the government reported that durable goods orders weakened in April.

The news sent money pouring into the bond market as investors look for a safe haven for their money in a time of slowing economic growth.

But sales of new homes defied predictions of a slowdown in April and rose 4.9 percent while prices climbed, although the supply of homes for sale hit a record, a government report showed Wednesday. (Full story).

Even an afternoon decline in the price of such key commodities as gold and oil and hesitation by equity investors was not enough to help prop up Treasury prices, as bond traders speculated whether the central bank would raise rates again when it meets in June.

Prospects for a 17th straight rate hike by the Federal Reserve in June were at 54 percent in late trading, down from 60 percent on Tuesday, Reuters reported.

Investors still have plenty of numbers to crunch later this week including April's existing home sales due out Thursday and a report on personal income and consumption slated for release on Friday.

In currency trading, the euro bought $1.2782, down from $1.2832 late in New York Tuesday. The dollar bought ¥112.62, up from ¥111.76 the previous session.

-------------------------------------------

Yields throw the Fed a curve -- click here.

Click here for bond charts.