Since 2019, the 10-year Treasury yield has reached its highest point following Powell's comments.

On Tuesday, the 10-year U.S. Treasury yield reached a high for the past few years after investors considered the remarks from Federal Reserve Chair Jerome Powell regarding rate increases.

The yield on the benchmark increased by 6.2 basis points to 2.379% at 4:05 p.m. ET. The yield on the also rose by 6.7 basis points to 2.603%. Yields move inversely to prices, with 1 basis point equal to 0.01%.

During the session, the benchmark 10-year yield reached a new high of 2.392%, surpassing the previous high set in May 2019.

In a speech to the National Association for Business Economics on Monday, Powell stated that inflation is excessively high.

The Fed chief stressed that the central bank would keep raising interest rates until inflation is brought under control, and that hikes could become even more aggressive than predicted.

"If we decide to increase the federal funds rate by more than 25 basis points at a meeting or meetings, we will proceed with that plan," stated Powell.

Goldman Sachs increased its forecast for rate hikes to 50 basis points at the May and June Fed meetings after some market participants raised their expectations following Powell's comments.

Kathy Jones, chief fixed-income strategist at Charles Schwab, stated that the tone and message of the policy tightening is 'we are going to tighten policy,' and the more aggressive the Fed moves, the flatter the yield curve will become.

Russia and Ukraine have not made any progress in their geopolitical talks. On Monday, Ukraine rejected an ultimatum to surrender its besieged port city of Mariupol to Russian forces.

Ukrainian President Volodymyr Zelenskyy stated to Eurovision News that ultimatums will not succeed as Ukrainian citizens, who are trapped, will continue to fight until the end.

The spread of an omicron subvariant in Europe and China's worst Covid-19 outbreak since the pandemic are also being closely monitored by investors.

There are no major economic data releases slated for Tuesday.

A 52-week bill auction worth $34 billion is scheduled for Tuesday.

— bizfocushub.com staff contributed to this market report.