NEW YORK (CNNMoney.com) - Treasury prices fell further Monday, putting the 10-year yield back above 5.1 percent, after key economic reports hinted at inflationary pressures.

The benchmark 10-year Treasury note fell 19/32 to 95-03/32 to yield 5.14 percent, up from 5.06 late Friday.

The 30-year bond sank 28/32 to 89-01/32 to yield 5.23 percent, up from 5.16 percent in the previous session. Bond prices and yields move in opposite directions.

The five-year note dipped 13/32, yielding 5.01 percent, and the two-year note was down five ticks to yield 4.95 percent.

Bond prices tumbled after the Institute of Supply Management reported its April manufacturing index, which came in stronger-than-expected at 57.3 last month, up from 55.2 in March. Economists had expected the number to fall to 55.1.

Any number above 50 indicates growth in the sector.

But investors were focused on the report's prices paid index, a key measure of inflation, which also jumped, hitting 71.5 from 66.5 in March.

Bond investors generally hate inflation since it erodes the value of their fixed-interest paying investments.

Bonds were down early in the session on the March U.S. consumer spending report, which revealed that a closely-watched Fed inflation gauge climbed 0.3 percent, beating expectations and up from 0.1 percent the month before. Economists polled by Reuters anticipated a 0.2 percent increase.

Monday's healthy economic data suggests that the Fed will maintain its monetary tightening campaign in an effort rein in economic growth and inflation. Economists widely Fed's policymakers to raise their short-term rate target to 5 percent at their May 10 meeting. But whether they'll keep boosting rates after that remains unclear, even though Fed chairman Ben Bernanke said last week that the central bank could take a break from raising rates at some point.

The dollar recovered slightly after hitting a seven-month low against the yen and a one-year low against the euro earlier in the session.

The euro bought $1.2588, down from $1.2616 late Friday, while the dollar traded at ¥113.34, down from ¥113.86 in the previous session.

--from staff and wire reports

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