NEW YORK (CNNMoney.com) - Bond prices rose Tuesday after dipping earlier in the day as traders welcomed minutes from the Fed's last meeting which revealed that interest rate hikes may be nearing an end.

Treasury officials hinted that only a few more rate hikes were likely in coming months. (Full story)

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The benchmark 10-year note gained 6/32 to 101, yielding 4.37 percent, down from 4.39 late Friday. Bond markets were closed Monday in observance of New Year's Day.

The two-year note was up 4/32 to 100-2/32, yielding 4.34 percent, down from 4.41 late Friday. Bond prices and yields move in opposite directions.

The five-year note gained 6/32 to 100-9/32 to yield 4.31 percent. The 30-year bond lost 10/32 to 112-4/32 to yield 4.59 percent, up from the previous session.

The Treasury yield curve, or the spread between short and long rates, flattened after inverting last week.

Investors have been closely watching the yield curve because the past two recessions have been preceded by an inversion, when short rates exceed long rates.

Treasury prices had dipped earlier Tuesday as traders anticipated reports reflecting strength in the economy.

Economists surveyed by Briefing.com expect the Institute of Supply Management's index of manufacturing growth to slip to 57 in December from a reading of 58.1 in November. Any reading above 50 indicates continued growth in the sector.

In currency trading, the dollar fell.

The euro bought $1.2017, up from $1.1836 late Friday in New York. The dollar bought ¥116.20, down from ¥117.98 in the previous session.

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