NEW YORK (CNNMoney.com) - Treasury prices jumped Thursday after a Fed official's comments suggested the central bank remains committed to fighting inflation and as investors saw signs of cooling in the economy.

The dollar fell against the euro and the yen.

The 10-year Treasury note gained 15/32 to 100-9/32 to yield 5.09 percent, down from 5.16 Wednesday.

The 30-year bond gained 1-5/32 to 89-22/32, yielding 5.19 percent, down from 5.28 in the previous session. Bond prices and yields move in opposite directions.

The five-year note gained 4/32 to yield 4.98 percent, while the two-year note was unchanged, yielding 4.95 percent.

Treasurys jumped after a Fed official reinforced the Fed's inflation-fighting credentials. Bond investors hate inflation, which erodes the value of their fixed-interest paying investments.

Richmond Federal Reserve Bank President Jeffrey Lacker said Thursday containing inflation has to be the Fed's primary focus. He also said the inflation outlook may be beyond "acceptable" and that could make a pause in the Fed's rate-hiking campaign less likely.

Several signs of cooling in the economy also supported bond prices.

The Philadelphia Federal Reserve bank's index on regional manufacturing came in above expectations, but the survey's employment component showed the weakest reading since November 2003, Reuters reported.

Also on Thursday, Fed Chairman Ben Bernanke said the housing market appears to be cooling. Housing has played a large role in the economic recovery, driving consumer spending and economic activity.

In other economic news, a report on jobless aid showed new claims unexpectedly surged last week by 42,000 as a partial government shutdown in Puerto Rico added 46,000 unadjusted claims, a government report showed Thursday. (Full story)

A report on leading economic indicators came in weaker than expected. The reading edged lower 0.1 percent in April versus forecasts for a rise of 0.1 percent.

The National Retail Federation also released a survey that showed that summer spending could take as hit as more consumers begin to feel the gas price pinch on their wallets. Three out of four surveyed said they will cut back on eating out, vacations and purchases of big ticket items.

In currency trading, the euro bought $1.2825, up from $1.2735 on Wednesday. The dollar traded at ¥110.83, down from ¥111.02 in the previous session.

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