Light volume stalls Treasuries

NEW YORK (CNNMoney.com) -- Treasury prices ticked slightly lower Wednesday after reports on U.S. gross domestic product and home sales failed to move the market amidst extremely light volume.

Before the market open, the Commerce Department said the economy grew 2.6% in the third quarter -- slightly more than the 2.5% previously reported.

And after the opening bell, National Association of Realtors' monthly report said sales of previously owned homes jumped 5.6% in November to an annual rate of 4.68 million. The rate was down 27.9% from 12 months earlier, but still better than expected.

But market movements were muted as investors worked to shore up end-of-the-year positions and lock in gains.

"Staffing levels on most of the trading desks have been light all week, and are only expected to tail off further as we approach the holiday close," said Kevin Giddis, managing director of fixed income at Morgan Keegan in a research note.

Bond markets will be open for business Thursday, but closed on Friday.

"The market is thin and getting thinner," said David Coard, head of fixed income trading at Williams Capital Group.

Coard doesn't see that situation improving this week, and with volume light, it's difficult to pinpoint what exactly is moving the market.

"Some people are done, they are winding down," Coard said. "It's that type of environment."

Also on Wednesday, the Fed completed a $2 billion purchase of long-term debt.

The purchases are part of the Fed's larger quantitive easing program in which the central bank plans to buy a total of $600 billion in long-term Treasuries.

What yields are doing: The yield on the benchmark 10-year note increased to 3.34%. The 30-year bond yield ticked up to 4.44%.

Meanwhile, the yield on the 2-year note increased to 0.62%, and the 5-year note pushed up to 1.99%.

Treasury prices and yields move in opposite directions.