By Heather Gillers 

Government-bond prices in the U.S. remained relatively flat Tuesday amid light trading as investors continued to digest remarks by federal officials.

The yield on the benchmark 10-year Treasury note was 1.57%, compared with 1.566% Monday. Bonds yields fall as prices rise.

"We've drifted around without a lot of direction," said Priya Misra, head of global rates strategy at TD Securities in New York. She said this Friday's expected payroll report will offer important guidance on when the Federal Open Market Committee might raise interest rates.

Hawkish comments last Friday by Fed officials fueled speculation of a September rate increase, prompting a selloff. That was followed by a rally as dropping prices attracted buyers. Prices drifted down again late Monday night.

The market rallied again Tuesday morning after Federal Reserve Vice Chairman Stanley Fischer adopted a more dovish tone about whether the Fed will raise rates more than once this year.

"I don't think we know at the time we start whether it's one and done or several," Mr. Fischer said in an interview. "It depends entirely on what's happening in the economy."

At a conference in Jackson Hole, Wyo., Friday, Fed Chairwoman Janet Yellen said the case for raising rates "has strengthened in recent months." In an interview later that day, Mr. Fischer interpreted the comments to mean that the Fed could raise interest rates twice this year, including at its next policy meeting in September.

By one measure, investors' expectations of a rate increase by the FOMC in September are right where they were on Thursday, before Ms. Yellen's speech and Mr. Fischer's comments. Federal-funds futures, which are used to place bets on central-bank policy, show investors and traders again believe there is a 24% chance the Fed will raise rates next month, according to CME Group. That number rose as high as 33% on Friday.

"The market is walking back the odds of a hike in September," said Aaron Kohli, an interest-rate strategist at BMO Capital Markets.

Write to Heather Gillers at heather.gillers@wsj.com

(END) Dow Jones Newswires

August 30, 2016 17:51 ET (21:51 GMT)