NEW YORK (MarketWatch) -- Treasury prices extended gains and the dollar continued paring losses on Thursday after a report showed manufacturing in the Philadelphia area slumped more than forecast this month. A separate report said home prices fell in February. Yields on 10-year notes UST10Y -0.56% , which move inversely to prices, fell 3 basis points to 3.38%. The dollar index DXY -0.45% , which measures the U.S. unit against a basket of major rivals, fell to 74.020, down from 74.384 in late North American action on Wednesday. The euro EURUSD +0.25% traded at $1.4559, up versus $1.4511 Wednesday.