(Updates market action)
NEW YORK, Aug 30 (Reuters) - U.S. interest rates futures fell on Wednesday as stronger-than-forecast figures on private hiring in August and economic growth in the second quarter revived bets that the Federal Reserve would raise key overnight borrowing costs in December.
Payroll processor ADP said U.S. companies added 237,000 workers in August, the most in five months.
Also, the government upgraded gross domestic product growth in the prior quarter to 3.0 percent, the quickest pace in more than two years.
These latest readings rekindled expectations the economy is strong enough for the Fed to dial back stimulus through shrinking its $4.2 trillion worth of bond holdings and raising short-term rates further.
Federal funds futures suggested traders late Wednesday saw a 37 percent chance the U.S. central bank would raise short-term rates at its Dec. 12-13 policy meeting, up from 32 percent late on Tuesday, CME Group’s FedWatch tool showed.
They implied traders do not fully expect another rate hike until late 2018. (Reporting by Richard Leong; Editing by Chizu Nomiyama and James Dalgleish)