NEW YORK (CNNMoney.com) -- U.S. Treasury debt prices fell on Friday amid worries that an anticipated Fed interest rate cut in early 2007 may be delayed after surprisingly upbeat manufacturing conditions and consumer confidence data.

The dollar rose against the euro and yen.

The 10-year Treasury note lost 4/32, or $1.20 cents on a $1,000 note, to yield 4.63 percent, up from 4.62 late Thursday.

The 30-year bond lost 3/32, or 90 cents on a $1,000 bond, to yield 4.76 percent, unchanged from the previous session. Bond prices and yields move in opposite directions.

The five-year note lost 6/32, yielding 4.58 percent, while the two-year ticked down 1/32 at 4.68 percent.

Traders said government bonds were little moved by comments from St. Louis Federal Reserve Bank President William Poole that he would back a reduction in interest rates if price pressures and growth were sufficiently weak.

Spending by consumers rose 0.1 percent in August, compared with a 0.8 percent gain in July, according to a Commerce Department report. In inflation-adjusted dollars, spending actually slipped 0.1 percent.

Economists surveyed by Briefing.com had forecast a 0.2 percent rise in August before adjusting for a rise in price.

The so called core PCE deflator, which measures prices paid by consumers for goods other than food and energy, was up 0.2 percent in the month, in line with estimates.

Inflation hurts bonds as it erodes the value of the fixed interest-paying investment.

In currency trading, the euro bought $1.2673, down from 1.2706 late Thursday. The dollar bought ¥118.16, up from ¥117.77 the previous session.

Bond charts