NEW YORK (CNNMoney.com) -- Treasury prices rose for the third straight session as investors interpreted Federal Reserve Chairman Ben Bernanke's comments as a hint that interest rates may be set for a pause.

The dollar fell against the euro and yen.

The benchmark 10-year note gained 3/32, or $0.94 on a $1,000 note, to yield 5.02 percent, down slightly from 5.03 late Thursday. The 30-year bond added 5/32, or $1.56 on a $1,000 bond, to yield 5.07 percent, down from 5.08 in the previous session. Bond prices and yields move in opposite directions.

The five-year bond rose 3/32, or $0.94 on a $1,000 bond, to yield 4.96 percent, while the two-year note rose one tick, or $0.31 on a $1,000 note, to yield 5.05 percent.

Bernanke testified before the House Financial Services Committee on Thursday, mostly repeating prepared remarks he gave to the Senate Banking Committee on Wednesday.

Bernanke said that while he is still concerned about rising prices, slowing economic growth should help inflation ease next year.

Bond prices rose Wednesday and Thursday on the suggestion that the Fed may be ready to wind down its two-year-old rate-hiking campaign.

The Fed has raised benchmark overnight borrowing costs to 5.25 percent in quarter-point increments dating to June 2004.

Financial markets have been closely divided over whether an 18th consecutive increase will be in the offing at the Fed's next meeting Aug. 8.

Also on Thursday, a key gauge of future economic growth rose slightly in June, suggesting the economy will cool further in the second half of 2006.

No economic reports are slated for Friday's session.

Inflation hurts bonds as it erodes the value of the fixed-income investment. However, rising interest rates generally help the dollar as they make dollar-denominated securities more attractive to foreign investors.

In currency trading, the dollar bought ¥116.08, down from ¥116.93 late Thursday. The euro bought $1.2669, up from $1.2633 in the previous session.

Related: Bernanke: Once bitten, twice shy.