NEW YORK (CNNMoney.com) - Bond prices fell Tuesday after the minutes from the last Fed policy making meeting fueled fears about further interest-rate hikes.

The dollar moved higher against the euro and the yen.

The benchmark 10-year note fell 11/32 to 99-14/32, yielding 4.57 percent, up from 4.56 late Friday. The bond market was closed Monday for Presidents Day.

The 30-year bond slipped 11/32 to 99-14/32, yielding 4.53 percent, up from 4.50 the previous session. Bond prices and yields move in opposite directions.

The two-year was down two ticks, yielding 4.71 percent, and the five-year note lost 6/32, bringing the yield up to 4.59 percent.

Federal Reserve policy-makers said borrowing costs are close to where they need to be and agreed future moves would be data-dependent, minutes of the January meeting released Tuesday showed.

At its last meeting, the Fed raised its key short-term interest rate a quarter of a percentage point to 4.50 percent. The widely expected move was the 14th straight hike since June 2004. (Full story.)

In other economic news, the leading indicators index rose a sharp 1.1 percent in January, its largest jump in seven months, to a record 140.1, the Conference Board reported.

The rise was the fourth straight monthly gain and was well ahead of expectations for a 0.5 percent climb, according to economists surveyed by Briefing.com.

"Leading indicators were stronger than expected. It may have rekindled fears of rate hikes," Todd Clark, director of stock trading at Nollenberger Capital Partners in San Francisco, told Reuters.

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 $1.1912, down from $1.1946 Monday. The dollar bought ¥118.68, up from ¥118.25 in the previous session.

________________

Click here for updated bond charts.