Aug 22 (Reuters) - U.S. Treasury yields dropped on

Friday after Federal Reserve Chair Jerome Powell pointed to a

possible rate cut at the central bank's September meeting but

stopped short of committing to it.

U.S. two-year yields, which are tied to the Fed's monetary

policy, fell 9.4 basis points (bps) to 3.698%.

The benchmark 10-year yield fell 6.9 bps to 4.262%

.