Indian government bond yields ended steady on Friday, due to the lack of fresh triggers, with the focus now shifting to key U.S. jobs data to gauge the Federal Reserve's interest rate trajectory.

The benchmark 10-year yield ended at 7.1470%, following its previous close of 7.1598%. The yield ended 4 basis points (bps) lower this week, similar to last week's fall.

U.S. Treasury yields slipped on Thursday, with investors continuing to digest the Fed's less-than-hawkish stance on monetary policy that suggested rate cuts were very much on the table even though inflation remained stubbornly above its 2% target.

"While some sections may construe this as dovish, we would think that Fed remains hawkish and the wait for a rate cut will be longer," said Anitha Rangan, an economist at Equirus Group.

The probability of a rate cut in September has now risen to 61% from under 50% earlier in the week, while investors now expect around 40 bps of rate cuts in 2024, up from around 35 bps earlier this week, according to CME's FedWatch Tool.

U.S. jobs data, due later on Friday, could affect those expectations.

"With the Fed remaining on the sidelines, the Reserve Bank of India (RBI) will have to remain on guard too. For India, with the twin deficits well under control, the RBI gets the option to wait and watch too," Rangan added.

The RBI kept the lending rate steady at 6.50% for the seventh consecutive meeting in April and the market expects rate cuts only in early 2025.

Earlier in the day, New Delhi raised 280 billion rupees ($3.36 billion) through a sale of bonds and the cut-offs were in line with market expectations.

Traders will continue to keep an eye on activity from foreign investors over the coming days after they posted their biggest monthly sale in four years in April, which most analysts feel is an aberration.

(Reporting by Bhakti Tambe; Editing by Savio D'Souza)