NEW YORK (CNNMoney.com) - Treasury prices stayed near session highs late Friday after a report that new home sales fell more than expected, fueling speculation that the Federal Reserve may be nearer to winding down its rate hike campaign.

The dollar weakened against the euro and the yen.

The benchmark 10-year Treasury note jumped 15/32 to 98-20/32 to yield about 4.68 percent, down from 4.74 percent late Thursday.

The 30-year bond climbed 30/32 to 96-27/32, yielding 4.70 percent, down from 4.75 in the previous session. Bond prices and yields move in opposite directions.

The five-year note rose 9/32 to 99-9/32, yielding 4.67 percent, while the two-year note climbed three ticks to yield 4.72 percent, exceeding that of the benchmark 10-year note.

After turning higher on durable goods orders data, bond prices jumped on news that new home sales fell more than expected, selling at an annual rate of 1.08 million homes in February, down 10.5 percent from the revised rate of 1.21 million in January.

Economists surveyed by Briefing.com had forecast that new homes would sell at a 1.21 million annual pace in the most recent period, but that would have been down from the previously reported 1.23 million pace the month before.

The Commerce Department reported that new orders for durable goods rose 2.6 percent in February, but investors focused on non-defense capital orders excluding aircraft, a measure of overall business spending, which fell 2.3 percent versus forecasts for a 1 percent increase.

Investors bet that the weaker-than-expected numbers may mean that the Fed can end its rate-hiking campaign sooner rather than later.

The central bank is expected to its target for a key short-term rate, the fed funds rate, for the 15th straight time next week, to 4.75 percent.

Friday's figures may fuel speculation that the Fed will take a pause when it meets in May. The Fed raises rates to slow the economy and cuts them when it wants to stimulate growth.

In currency trading, the euro bought $1.2031, up over half a cent from $1.1974 late Thursday, while the dollar fell to ¥117.52 from ¥117.90 the previous session.

--from staff and wire reports

____________________

Ben Bernanke is 'quite concerned' about the budget deficit. Full story here.

Click here for bond charts.