NEW YORK (CNNMoney.com) - Bonds gained slightly Thursday, barely moving on upbeat labor and housing reports, as Congressional testimony from new Fed Chairman Ben Bernanke was in line with expectations that interest rate hikes will continue.

The dollar fell slightly.

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The benchmark 10-year note rose 3/32 to 99-9/32, yielding 4.59 percent, while the 30-year bond gained 2/32 to 98-28/32, yielding 4.57 percent, down slightly from the previous session. Bond prices and yields move in opposite directions.

The two-year held steady, yielding 4.70 percent, and the five-year note gained 2 ticks to yield 4.59 percent, unchanged from late Wednesday.

Treasuries ticked lower Thursday morning after a pair of economic reports suggested resilience in the real estate sector and health in the labor market.

The Census Bureau said housing starts surged to the highest level in nearly 33 years, reaching an annual pace of 2.28 million homes in January. Economists surveyed by Briefing.com had expected housing starts to come in at an annual rate of 2.02 million in the month. (Full story.)

Also on Thursday, the Labor Department released its weekly reading on jobless claims. While initial claims rose surprisingly in the latest week, the total number of filings remain below a key level, suggesting health in the employment market. (Full story.)

Inflation concerns were slightly raised by the reports, as some investors worry a robust job market will push wages higher, while others fear overheating in the real estate market.

But investors mostly looked to newly appointed Fed chief Bernanke for direction.

Speaking to the Senate, Bernanke repeated a speech in which he hinted at the need for at least a bit more monetary tightening. A question-and-answer session yielded few curveballs from the market's standpoint.

On Wednesday, Bernanke said the economy was healthy, but suggested the central bank would keep hiking interest rates to keep inflation at bay.

The dollar bought ¥117.62, down from ¥117.90 late Wednesday. The euro bought $1.1903, up slightly from $1.1885 in the previous session.

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30-year mortgage rates hit a 2006 high at 6.28 percent this week -- read the full story here.

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