The yield on the US 10-year Treasury note rose toward 4.2% on Thursday, extending the rebound from the five-month low of 4% touched last week as markets as strong economic data reduced the urgency for more rate cuts by the Federal Reserve. The US GDP was revised higher to reflect an annualized growth of 3.8% in the second quarter, while durable goods orders were sharply above market expectations. Additionally, initial unemployment claims sank for a second straight week to a two-month low, pushing against earlier concerns of a rapid deterioration in the labor market, which previously drove FOMC members to cite the need for additional rate cuts. Rate futures showed that investors were still in consensus that the Fed will deliver a 25bps rate cut next month, but over one third of the market has positioned for a hold in December. Softer expectations of cuts by the Fed drove yields in shorter notes to rise more than those in longer bonds, trimming the yield steepening from this quarter.