NEW YORK (CNNMoney.com) - Treasury prices Wednesday gave up much of their gains from the previous day's big rally on a stronger-than-expected manufacturing report from the New York Fed.

The positive economic number suggested to traders that more interest rate hikes are due from the Federal Reserve in coming months.

The dollar slipped against the euro and yen.

The benchmark 10-year Treasury note declined 7/32 to 98-6/32 to yield 4.73 percent, up from 4.70 late Tuesday.

The 30-year bond fell 23/32 to 95-30/32, yielding 4.76 percent, up from 4.71 percent in the previous session. Bond prices and yields move in opposite directions.

The five-year note fell 1/32, yielding 4.69 percent, and the two-year note was down two ticks, yielding 4.68 percent.

The New York Federal Reserve's "Empire State" factory survey rose to 31.2 in February, the highest in nearly two years, versus forecasts for a drop to 19.

Prices also got a downward push from news that capital inflows into bonds slipped in January.

Purchases of Treasuries fell to $4.4 billion in January from $18.3 billion in December. Treasuries took a hit on the news, suggesting that the market was expecting a larger number.

Bonds were little changed on the afternoon release of the Fed's Beige Book data, which generally confirmed traders' consensus about upcoming interest rate hikes.

In currency trading, the euro bought $1.2069, up from $1.2021 late Tuesday, while the dollar edged lower to ¥117.32 from ¥117.42 in the previous session.

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