The 10-year Treasury yield decreases following Powell's statement about the possibility of a Fed rate reduction.

After Federal Reserve Chair Jerome Powell indicated that rate cuts are imminent, the U.S. 10-year Treasury yield decreased on Monday, following a pattern of decline.

The 10-year Treasury yield decreased by 1 basis point to 3.791% by 5:00 a.m. ET, while the 2-year Treasury yield also decreased by 1 basis point to 3.895%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

On Friday, the 10-year yield decreased by approximately 6 basis points, while the 2-year yield dropped nearly 10 basis points.

Powell boosted expectations for a rate cut at the central bank's next meeting by stating that "it's time for policy adjustments."

Powell stated in his Jackson Hole symposium speech that inflation has decreased significantly and the labor market is no longer as tight as it was before the pandemic.

Although he indicated the direction of rate cuts, he did not guarantee a cut at the Fed's Sept. 18 meeting, emphasizing that the timing and pace of rate cuts would depend on incoming data, the evolving outlook, and the balance of risks.

Despite the Fed's reluctance to cut rates, traders are still determined to push for a rate cut, with a 63.5% chance of a quarter-point reduction and a 36.5% chance of a half-point reduction, according to the CME Group's FedWatch Tool.

A Treasury auction of 13-week and 26-week notes is due on Monday.

— CNBC's Jeff Cox contributed to this report.