TREASURIES-Yields rise as Friday's jobs data in focus

* Friday's jobs report for September in focus

* Yellen speech next week watched for rate view

By Karen Brettell

NEW YORK, Oct (Shenzhen: 000069.SZ - news) 4 (Reuters) - U.S. Treasury yields rose to

one-and-a-half week highs as investors looked ahead to Friday's

highly anticipated employment report for further clues on when

the Federal Reserve is likely to raise interest rates, with no

major new data due on Tuesday.

Richmond Federal Reserve President Jeffrey Lacker, who is

not a voting member of the Fed's rate-setting committee, on

Tuesday said there was a strong case for raising interest rates,

arguing that borrowing costs might need to rise significantly to

keep inflation under control.

Yields also rose on Monday after data showed U.S. factories

ramped up activity in September, with the sector now expanding,

boosting confidence in the economy.

Investors will be focused on whether August's weaker than

expected 151,000 jobs gains will be revised upward when the

labor data is released on Friday.

"The market is anticipating that it will be revised up for

the August number," said Lou Brien, a market strategist at DRW

Trading in Chicago.

Employers are expected to have added 175,000 jobs in

September, according to the median estimate of 100 economists

polled by Reuters.

Benchmark 10-year notes were last down 4/32 in

price to yield 1.64 percent, the highest since Sept. 22.

A speech by Fed Chair Janet Yellen on Oct. 14 at an economic

conference at the Boston Fed will then be closely watched for

any signals that a rate hike is pending.

"I think the most important thing in the next couple of

weeks is Yellen's speech at the Boston Fed economics

conference," said Brien, noting the conference was used by

former Fed Chair Ben Bernanke in 2010 to indicate a new round of

stimulus was coming.

It may be Yellen's last chance to indicate if a rate

increase is likely at the central bank's November meeting.

Traders are currently pricing in only an 11 percent chance

that the Fed will raise rates in November, and a 62 percent

chance of an increase in December, according to the CME Group (Kuala Lumpur: 7018.KL - news) 's

FedWatch Tool.

(Editing by Chris Reese)