(Corrects spelling of Trump in headline)
* Monday's U.S. economic data weak overall
* Rate futures still pricing in 70 pct chance of June hike
* Mnuchin says ultra long bond make sense
* Trump says considering breaking up big banks
By Gertrude Chavez-Dreyfuss
NEW YORK, May 1 (Reuters) - U.S. Treasury debt prices dropped on Monday in generally thin volume, pressured by comments from Treasury Secretary Steven Mnuchin saying the government is looking into the issuance of ultra long-term bonds, or those with maturities beyond 30 years.
The yield on U.S. 30-year bond, which moves inversely to price, rose to a three-week high, while that of 10-year notes touched session peaks after Mnuchin's comments.
This is not the first time that Mnuchin has talked about ultra-long bonds. In November last year, he opened the possibility of their issuance, remarks that sent U.S. 30-year bond prices into a tailspin because of the potential impact on supply and the market dislocation they would cause.
Kim Rupert, managing director for fixed income analysis at Action Economics in San Francisco said Treasury may talk about it again at the next refunding announcement.
"But I still think Treasury is not close to doing anything yet," she added.
In a wide-ranging interview with Bloomberg, Mnuchin said ultra-long bonds "could make sense."
The Treasury currently issues coupon-bearing debt with maturities ranging from two to 30 years, while other countries, including Spain, Belgium and France, have issued 50-year debt.
Treasury prices also extended losses after President Donald Trump told Bloomberg Television he is actively considering breaking up the big banks.
"I think Treasuries sold off a little bit because of the uncertainty and the dislocation in the market," said Action Economics' Rupert.
Treasuries also fell despite a weak round of U.S. economic data on Monday.
Reports on Monday showed U.S. factory activity slowed in April, while consumer spending was unchanged in March, and an important inflation measure fell on a monthly basis for the first time since 2001.
The weak reports came ahead of the Federal Reserve's two-day policy meeting, which starts on Tuesday. The Fed is widely expected to hold rates steady, but investors will focus on the language of the statement for guidance on the number of rate increases this year and next.
Interest rate futures are still pricing a roughly 70 percent chance the Fed will raise rates in June, according to the CME's FedWatch.
In late trading, benchmark 10-year U.S. Treasury notes were down 11/32 in price to yield 2.321 percent, up from Friday's 2.282 percent.
U.S. 30-year bond prices fell more than a point, yielding 3.002 percent, up from 2.952 percent late on Friday.
On the front end, two-year yields were at 1.277 percent , slightly up from Friday's 1.27 percent. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Dan Grebler and Steve Orlofsky)