The Federal Reserve is seen as less likely to lift its policy rate any further this year than the 5.25%-5.5% range it established last week, traders bet, after a U.S. government report on Friday showed employers hired fewer workers last month than expected.

Futures contracts tied to the Fed's policy rate erased earlier losses after the report, as traders priced in a less-than-30% chance of a rate hike by year's end, down from about 35% earlier.

(Reporting by Ann Saphir; editing by Jason Neely)