MUMBAI, July 5 (Reuters) - Indian government bond yields are expected to be flat at the open on Friday, as market participants await a fresh supply of debt as well as key U.S. jobs data later in the day.

The benchmark 10-year yield is likely to move in the 6.99%-7.03% range, following its previous close at 6.9994%, a trader with a primary dealership said.

"The market has struggled for cues through the week, and the demand at the auction could provide some idea of investor appetite as this would the first auction after we have got clarity on foreign flows following the inclusion of Indian debt on a global index," the trader said.

Markets will keep a close eye on demand as New Delhi aims to raise 280 billion rupees ($3.35 billion) by selling bonds through the weekly auction, including the liquid 15-year paper.

The auction comes after a tepid start to foreign inflows following the inclusion of Indian debt in JPMorgan's emerging market debt index last week.

Meanwhile, the 10-year U.S. yield traded at around 4.35% during Asian hours, while U.S. markets were shut on Thursday.

U.S. yields eased on Wednesday amid growing signs of weakness in the manufacturing sector and jobs market, suggesting that the world's largest economy was slowing down.

Investors will now closely track crucial June nonfarm payrolls data, due after Indian market hours, which will give more clarity on the extent and timing of U.S. rate cuts this year.

While the Federal Reserve has lowered its forecast for rate cuts to 25 basis points (bps) in 2024, investors continue to expect 50 bps of cuts after recent soft U.S. economic data.

Markets will also eye inflation prints in India and the U.S. next week as the next set of directional triggers. KEY INDICATORS: ** Brent crude futures were 0.3% lower at $87.20 per barrel, after rising 0.1% in previous session ** Ten-year U.S. Treasury yield at 4.3701%, two-year yield at 4.7058% ** India to sell sovereign bonds worth 280 billion rupees ** RBI to set underwriting fees for 280 billion rupees of sovereign bond auction ** RBI to conduct 3-day variable rate reverse repo for 1 trillion rupees ($1 = 83.4880 Indian rupees) (Reporting by Dharamraj Dhutia Editing by Sonia Cheema)