NEW YORK (CNN/Money) - Treasury securities rose slightly Tuesday despite a stronger-than-expected consumer confidence report. Subdued activity in the bond market, despite inflationary pressure implied by the confidence report, suggested that traders are holding tight to their positions before the Federal Reserve's much anticipated interest rate hike.

The benchmark 10-year note rose 12/32 to 100-15/32 to yield 4.69 percent, from 4.73 percent late Monday. The 30-year bond added 20/32 to 100-3/32 to yield 5.37, down from 5.40 percent.

The two-year note inched higher by 2/32 to 99-27/32 to yield 2.82 percent, and the five-year note was up 10/32 to 100-14/32 to yield 3.90, down from 3.95 percent Monday. Bond prices and yields move in opposite directions.

The dollar also made gains on the euro and was up slightly against the yen.

With the Fed expected to raise rates by a quarter percentage point when its two-day meeting ends on Wednesday, bond market investors remained nervous and were reluctant to tweak their current positions.

"I haven't experienced a lull in trading like we've had in the last couple of weeks in years; it just seems no one really wants to make any huge bets going into the FOMC meeting, because they could say anything," said HSBC fixed-income strategist Ralph Axel.

The rate hike would likely be the first in a series of upward moves meant to stave off inflation, which is a concern to bond investors who believe rising inflation will erode the value of their fixed-rate securities. However, a rising rate environment often attracts funds in hopes of higher returns from fixed-income products, such as certificates of deposit and Treasury yields.

Investors reacted almost imperceptibly to the confidence report, apparently because it provided little new information.

"Confidence and jobs sort of go together; that's why no one moved on the confidence report," said Axel. "People are working it seems. It's not really much of a surprise."

Meanwhile, the dollar rose against the euro and the yen in anticipation of a rate hike. The dollar bought ¥108.33, up from ¥107.88 late Monday, and the euro bought $1.2085, down from $1.2190 late Monday.