NEW YORK (CNN/Money) - Treasury prices edged higher Tuesday even as solid manufacturing data suggested the economy is on the mend.

At around 3:50 p.m. ET, the benchmark 10-year note added on 3/32 to 99-22/32 to yield 4.04 percent versus 4.05 percent late Friday. The 30-year bond rose 6/32 to 106-28/32 to yield 4.91 percent, down from 4.92 late Friday. Bond prices and yields move in opposite directions.

Two-year notes rose less than 1/32 to 100-12/32, yielding 1.67 percent, while five-year notes were little changed at 99-31/32 with a 3.00 yield. The bond market was closed Monday for the President's Day holiday.

Industrial output rose in January, driven mainly by a surge in output from utilities in response to cold weather, the Federal Reserve said in a report that met Wall Street forecasts.

Industrial production rose 0.8 percent after being flat in December, according to the Fed, which also said factories, mines and utilities ran at 76.2 percent of capacity in the month, compared with 75.6 percent in December.

Economists, on average, expected production to rise 0.7 percent and capacity use of 76.2 percent, according to Briefing.com.

Separately, the New York Fed said its Empire State index of New York manufacturing activity rose to a record high in early February, defying Wall Street expectations for a slight decline.

The dollar, meanwhile, seemed relatively unaffected by the day's economic news. It fell versus the euro but edged up against the yen.

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The euro rose to $1.2839, coming within striking distance of January's record high just below $1.29. The single currency bought $1.2771 late Monday. The dollar, however, edged higher to ¥105.69 from ¥105.47 late Monday.

Dealers said the euro continued to be buoyed by comments from ECB chief Jean-Claude Trichet on Monday. Speaking before the European Parliament's economic and monetary affairs committee, Trichet stuck to the line agreed by the Group of Seven rich nations that rapid currency moves hurt growth.

"Trichet wasn't really signaling anything new yesterday. With him also mentioning that some imbalances need to adjust, this is implicitly dollar-negative," Paul Mackel, currency strategist at ABN AMRO, told Reuters.  

--from staff and wire reports