Bond traders wait for Fed's next move

NEW YORK (CNNMoney.com) -- Treasuries continued to trade in a narrow range Thursday as investors remained on the sidelines in anticipation that the Federal Reserve will soon take action to stimulate the economy.

Yields for the benchmark 10-year note edged higher to 2.52% from 2.48% late Wednesday. The 2-year note's yield held steady at 0.36% and 5-year note's yields rose to 1.13%. The yield on the 30-year bond inched up to 3.92%.

Yields have fallen into a holding pattern this week as traders take a wait-and-approach leading up to the Fed's next policy meeting next month.

Investors have pushed Treasury yields lower in anticipation that the Fed will launch a second round of asset purchases -- or so-called quantitative easing -- in an effort to stimulate the economy at the conclusion of its two-day meeting Nov. 3.

"Yields haven't moved much because we are waiting for more clarity from the Fed," said Richard Bryant, head of Treasury trading at MF Global. He added that investors are looking for details related to the size, timing and execution strategy for the central bank's asset purchases.

Bryant said traders will likely push yields slightly lower to make room for new supply, but major moves won't come until the Fed outlines its next move.

The Treasury Department announced Thursday that it will auction $109 billion in shorter-term notes and Treasury Inflation-Protected Securities next week, beginning with the sale of $35 billion in 2-year notes on Tuesday.