MUMBAI, - Indian government bonds were little changed early on Monday, caught between softer-than-expected U.S. jobs data, which lowered expectations of a Federal Reserve rate hike, and rising oil prices that kept investors wary. U.S. Labor Department's employment report on Friday showed the unemployment rate fell to 4.1% last month from 4.2% in June, as more people left the labor force, pushing the participation rate to a near 5-1/2-year low. U.S. Treasury yields eased after the data, while investors cut the odds of a September rate hike to 42% from 67% last week.
Lower Fed-hike expectations supported demand for longer-duration Indian debt, though rising oil prices in Asian trade tempered risk appetite.
