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.Brent crude ​futures rose 0.4% to $83.90 a barrel, set to extend ⁠gains to ‌a fourth day.Foreign flows into Indian bonds may remain muted despite tax relief: SBI FundsForeign investment in Indian government bonds is projected to stay subdued as global yields alongside domestic interest rates reduce investor attraction. The postponement of India's inclusion in global bond indices further curbs foreign portfolio investments. The Reserve Bank of India is anticipated to keep interest rates steady for a considerable duration, with heightened global yields providing minimal support to local interest rates.The benchmark 6.94% 2036 Indian bond ​yielded 6.7594% at ​11:25 a.m. IST, versus 6.7651% at Friday's close.The 30-year ⁠and 40-year bond yields each fell 2 basis points to ​7.3913% and 7.4834%, respectively. Bond yields move inversely to ​prices. India's longer-duration bonds have been under pressure since the U.S.-Iran war began, with higher oil prices raising concerns about global inflation and prospects of higher interest rates."Easing expectations of U.S. tightening improve the case for taking duration risk in India, particularly as the Reserve Bank of India seems unlikely ‌to raise rates at least until December," a private-bank trader said. The RBI held its key rate last week, but lowered ​its inflation forecasts, prompting ​analysts to push ⁠back calls for further rate hikes. Investors will watch inflation readings from India and the United States due this week for fresh rate cues. A Reuters poll of ​40 economists forecast India's July retail inflation would rise to 4.50% from 4.38% in June.RATESIndia's overnight index swaps eased, tracking offshore receiving.The one-year and the two-year swap rates lowered slightly to 5.7575% and 5.9425% respectively. The most liquid five-year swap rate declined 1.5 bps to 6.2475%.