Bond traders are becoming more certain the Federal Reserve will raise interest rates next month as economists say a U.S. jobs report Friday will show enough improvement to justify such a move.

The chance of a rate increase at the Fed's December meeting rose to 78 percent, the highest since March and up from 69 percent at the end of last week, futures contracts indicate. The report will show employers added 173,000 workers in October, versus 156,000 in September, according to a Bloomberg survey of economists. Even so, Treasuries rose as investors sought relatively safe assets in the run-up to next week's U.S. election.

"A combination of better data, both on the growth and inflation front, and comments from the Fed bolstered a market view that a December rate increase is likely," said Mohit Kumar, head of interest-rates strategy at Credit Agricole SA's corporate- and investment-banking unit in London. "But a lot is already in the price, and there's still ample liquidity in the system, which means enough buyers of long-dated bonds. U.S. elections also have an impact."