* U.S. economy creates 156,00 jobs, but wages rise
* U.S. debt yields recover from multi-week lows (Adds comment, details, byline, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 6 (Reuters) - U.S. Treasury debt yields rallied from multi-week lows on Friday after data showed a rebound in U.S. wages last month despite a smaller-than-expected jobs gain, which could drive the Federal Reserve to consider raising interest rates as early as the first quarter.
Yields on benchmark U.S. 10-year notes rose from a five-week trough, while those on 30-year bonds recovered from a seven-week low following the jobs data that reflected a steadily improving labor market.
U.S. two-year note yields rebounded from three-week lows hit earlier in the session.
Non-farm payrolls increased by 156,000 jobs in December, compared with market forecasts of a gain of 178,000, the Labor Department said.
But investors focused more on average hourly earnings, which increased 10 cents or 0.4 percent. That pushed the year-on-year rise in average hourly earnings to 2.9 percent, the biggest increase since June 2009, from 2.5 percent in November.
"The wage pressure number will give the Fed enough ammunition to consider raising rates again perhaps in the first quarter," said Dan Heckman, senior fixed income strategist, at U.S. Bank Wealth Management in Kansas City, Missouri.
"You want jobs to stay in this 150,000 to 175,000 range because it is a healthy sign and is critical to keep up with the U.S. demographics," he added.
Fed fund futures after the U.S. job reports suggested a roughly 25 percent chance the central bank will nudge rates higher at its March meeting, according to the CME Group's FedWatch tool.
In early morning trading, the U.S. 10-year note was down 8/32 in price to yield 2.397 percent, compared with 2.368 percent late on Thursday.
U.S. 30-year bond prices fell 12/32, yielding 2.982 percent , from Thursday's 2.963 percent.
U.S. two-year note yields were at 1.201 percent from 1.178 percent on Thursday. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Meredith Mazzilli)