NEW YORK (CNNMoney.com) - Bond prices fell for the fourth straight session Thursday, after economic reports added fuel to the expectation that the Federal Reserve may raise interest rates in March as well as in January.

The dollar rose against the euro and the yen.

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The benchmark 10-year note fell 9/32 to 99-28/32 to yield 4.51 percent, up from 4.47 percent late Wednesday. The 30-year bond lost 18/32 to 109-31/32 to yield 4.69 percent, up from 4.65 percent the previous session. Bond prices and yields move in opposite directions.

The two-year note was down four ticks, yielding 4.47 percent. The five-year note also fell 4/32, yielding 4.43 percent.

Treasuries declined after the government said durable goods orders rose a larger-than-expected 1.3 percent in December. Economists surveyed by Briefing.com had expected orders to rise 1 percent.

The Census Bureau also revised November's increase to 5.4 percent, from a previously reported 4.4 percent gain, making it the largest monthly advance since May 2005.

The report, which tracks orders for big-ticket items meant to last three years or more, is considered a leading indicator of manufacturing activity.

The Labor Department said the number of workers making new claims for unemployment benefits rose slightly last week, although a more reliable long-term gauge of claims fell to its lowest level in 5-1/2 years.

Bonds extended the week's slump on the releases, both of which pointed to underlying strength in the economy.

"This may mean less change in the Fed statement on Tuesday, and increases the chances of a rate hike in March," David Wyss, chief economist at Standard & Poor's, told Reuters.

The Fed gathers next week in a meeting that is widely expected to yield the 14th consecutive monetary tightening, bringing the target federal funds rate to 4.50 percent.

But there is greater uncertainty beyond that point, although most primary bond dealers still see at least one more increase in March.

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 euro bought $1.2212, down from $1.2242 late Wednesday. The dollar bought ¥116.38, up from ¥115.74 in the previous session.

-- from staff and wire reports

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