The U.S. 10-year Treasury yield surpasses 2.29% with Powell stating that inflation is "excessively high."

After a warning from Federal Reserve chief Jerome Powell about inflation, U.S. Treasury yields increased on Monday.

The yield on the benchmark increased by 15.4 basis points to 2.302% by approximately 4:05 p.m. ET. Meanwhile, the yield on the moved up 10.5 basis points to 2.525%. It's important to note that yields move inversely with prices, and one basis point is equivalent to 0.01%.

Since 2019, the 2-year yield has surpassed 2%, reaching its highest level.

On Monday, Powell pledged to take decisive measures against inflation, which he stated poses a threat to the ongoing economic recovery.

The central bank leader stated in prepared remarks to the National Association for Business Economics that the labor market is robust but inflation is excessively high.

Powell stated that rate hikes could potentially increase by half a basis point instead of the traditional quarter-percentage-point adjustments.

According to Chip Hughey, managing director of fixed income at Truist Advisory Services, the Fed is currently focused on projecting a willingness to act aggressively against inflationary pressures, which means prioritizing its response to inflation over long-term growth.

The Fed's policy plans will be closely monitored by investors following the increase in its benchmark interest rate after a three-year hiatus last week.

Investors continued monitoring the geopolitical conflict between Russia and Ukraine.

If peace negotiations between Ukrainian President Volodymyr Zelenskyy and Russian leader Vladimir Putin fall apart, it could lead to a global conflict, Zelenskyy cautioned.

If these peace talks fail, it could mean that this is a third world war, Zelenskyy stated in an interview with CNN's Fareed Zakaria on Sunday morning.

The emergence of a new Covid-19 variant in Europe is being closely watched by investors.

As investors considered the impact of higher inflation and the war in Ukraine on US and global growth, the sell-off in bond prices resulted in higher yields, according to John Stoltzfus, chief investment strategist at Oppenheimer, in a note on Monday.

— CNBC’s Maggie Fitzgerald contributed to this market report.