NEW YORK (CNNMoney.com) - Treasury prices rose Tuesday as stock markets around the globe tumbled, while the dollar gained.

The 10-year note added 4/32 to 101-08/32, yielding 4.96 percent, down from 4.98 percent Monday. The benchmark yield was below the yield on the two-year note, resulting in an inverted yield curve.

Yield curve inversions in the past have been considered possible signs of impending recessions, but that is considered less reliable since the curve has inverted on and off over the last 11 months.

The 30-year bond increased 4/32 to 92-3/32 to yield 5.01 percent, relatively unchanged from the previous session. Bond prices and yields move in opposite directions.

The five-year note rose two ticks, yielding 4.92 percent, while the two-year note edged up one tick, yielding 5.00 percent.

"Treasurys pared their gains but are still up on the day because of the weakness in stocks," William O' Donnell, head of U.S. interest rate strategy at UBS, in Stamford, Conn, told Reuters.

The recent weakness in equities had fueled speculation about an economic slowdown and made fixed-income bonds look relatively safe in comparison.

Earlier in the session, the Labor Department said producer prices rose 0.2 percent in May after rising 0.9 percent in April. Economists surveyed by Briefing.com had expected the Producer Price Index to post a 0.4 percent rise.

Core PPI, which excludes often-volatile energy and food prices, rose 0.3 percent during the month, up from a 0.1 percent gain in April. Economists were expecting core PPI to rise 0.2 percent.

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

The euro bought $1.2534, down from $1.2603 late Monday. The dollar traded at ¥115.42, up from ¥114.24 in the previous session.

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Related: Updated bond charts