The U.S. 2-year Treasury yield rose close to 5% on Thursday following data indicating strength in the manufacturing sector.

The 2-year Treasury yield was last at 4.99% — near the key 5% level — after advancing almost 6 basis points. The yield on the 10-year Treasury rose by nearly 5 basis points to 4.633%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

Yields took a leg up after the Philadelphia Federal Reserve's manufacturing survey came in much higher than economists forecasted. It jumped to 15.5 for April, well above the consensus estimate of 2.5 from economists polled by Dow Jones.

The report also showed a jump in the prices paid index. That measure rose to 23, a gain of more than 19 points.

Investors awaited fresh comments from Fed policymakers as uncertainty around when and how often interest rates will be cut this year persisted. Comments made by Fed Chairman Jerome Powell and other policymakers in recent days and weeks have added to these concerns.

Powell on Tuesday said that there had been "a lack of further progress" when it comes to inflation returning to the Fed's 2% target range this year. The Fed has often said that it was looking for further evidence that inflation is easing sustainably, but Powell said recent economic data has not given central bank officials more confidence in this.

His comments came after the consumer price index for March came in higher than expected earlier this month. Expectations for when the first rate cut will take place have moved backward from the previously expected June date since then.

— CNBC's Jeff Cox contributed to this report.

Correction: An earlier version misstated information about the prices paid reading in the Philadelphia Fed manufacturing survey.