US RATE FUTURES-See chance for '08 Fed cut after jobs data

LOS ANGELES, Sept 5 (Reuters) - U.S. short-term interest rate futures jumped on Friday after a weaker than expected August payrolls report, to levels that showed a chance the Federal Reserve will cut rates late this year.

Futures point to the Fed holding the fed funds rate steady at 2 percent at this month's policy-setting meeting.

By year-end futures show a 10 percent chance that the Fed will cut rates to 1.75 percent.

Non-farm payrolls fell in August by a larger than expected 84,000 and the jobless rate jumped to 6.1 percent from 5.7 percent. (Reporting by Ros Krasny, Editing by Walker Simon)