By Sam Goldfarb

U.S. government bonds remained in a tight range Wednesday ahead of a news conference by President-elect Donald Trump and a $20 billion sale of 10-year notes.

In recent trading, the yield on the benchmark 10-year Treasury note was 2.385%, according to Tradeweb, compared with 2.379% Tuesday. Yields rise as bond prices fall.

Mr. Trump is expected to lead a news conference at around 11 a.m EST, with investors on the alert for any new information about his fiscal policies.

The 10-year note auction, set for 1 p.m. EST, follows a $24 billion sale of three-year notes on Tuesday, which drew solid demand in another sign of the building appetite for government debt after one of the biggest selloffs since the financial crisis.

One highlight of Tuesday's three-year note auction was the 54.6% indirect bidding, a proxy of demand from foreign investors. The gauge was the highest since September as U.S. government bonds offer more attractive yields compared with their peers in Europe and Japan.

In the weeks after the November election, Treasury yields soared as investors bet that Mr. Trump and a Republican-controlled Congress would increase the budget deficit by cutting taxes and boosting spending on infrastructure -- policies that could diminish the value of outstanding government debt by adding to the supply of bonds and stoking inflation.

More recently, though, bond prices have crept upward as some investors bet that the selloff may have been overdone.

Bond prices dropped on Friday after the latest jobs report showed solid wage gains, a possible sign of broader inflation, whichchips away at the fixed-rate returns of bonds. But prices recovered Monday and have been nearly flat since.

"It feels like the market is consolidating," said John Briggs, head of strategy for Americas at NatWest Markets. After digesting major economic reports last week, there has been little for traders to respond to this week, although that could change this Friday with the release of retail sales data, he added.

Write to Sam Goldfarb at sam.goldfarb@wsj.com

(END) Dow Jones Newswires

January 11, 2017 10:20 ET (15:20 GMT)

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