U.S. rate futures cut loss after jobless rate jump

NEW YORK, June 6 (Reuters) - U.S. interest rate futures pared earlier losses on Friday after an unexpectedly large jump in the jobless rate in May, suggesting the U.S. economy is still struggling.

June federal fund futures implied traders see zero percent chance of the Federal Reserve cutting the federal funds target rate later this month. This compared with a 4 percent chance of a 25 basis point rate increase shortly before the latest government payroll report. (Reporting by Richard Leong; Editing by Tom Hals)