MUMBAI, Nov 6 (Reuters) - The Indian rupee and bond yields will take cues from movements in U.S. Treasury yields, while bond traders will keep an eye on the central bank's action on debt sales during the week.

The rupee ended at 83.2850 per U.S. dollar on Friday, posting a marginal decline for the week. The local unit hit a record low of 83.2950 last Wednesday.

A new lifetime low "looks mostly out of the question" in the wake of the "significant" downward move on U.S. yields, a forex trader at a bank said. He expects a 83 to 83.25 range for the week.

U.S. Treasury yields slid further on Friday after data indicated that the U.S. labour market was softening, fuelling hopes that the Federal Reserve is done with hiking rates.

U.S. non-farm payrolls increased by 150,000 jobs last month after rising by 297,000 in September and compared to 180,000 expected by economists polled by Reuters. Further, the unemployment rose and fewer jobs were added in August and September than was previously estimated.

"The data has helped cement the view that the FOMC is finished tightening, with markets now pricing virtually no risk of a hike in December, and only about a 10% chance the Fed hikes again this cycle," ANZ said in a note.

The dollar index plunged about 1% on Friday and the 10-year U.S. yield declined to the lowest in more than a month. U.S. equities rallied.

Meanwhile, the Indian 10-year benchmark bond yield ended four basis points (bps) lower at 7.3140% last week, tracking a plunge in U.S. yields.

The 10-year U.S. yield dropped 29 bps last week to end at 4.5580% on Friday, as the market expects the Fed to keep rates steady after maintaining a status quo in the last two policy meetings.

"Bond yields are still in a narrow range and I do not expect them to break this range in a major manner. Even the U.S. yields have eased because of temporary positions and should rise again and settle in the 4.80%-5.00% mark," said A Prasanna, head of research at ICICI Securities Primary Dealership.

The Fed may not hike rates further, but there would not be any cut in the first six months of 2024, he added.

Market participants expect the Indian benchmark bond yield to remain in the 7.26%-7.38% range this week, with focus on the central bank's bond sale via open market operations.

Banks have informed the RBI that its plan to sell government bonds and its intervention in the foreign exchange market have hurt trading volumes, four bankers told Reuters.

Indian bond yields have remained elevated but in a narrow range, with volumes drying up since the RBI unveiled its debt sale plan in early October.

The banking system liquidity has stayed in deficit since then but eased sharply last week, raising the possibility of an auction soon.

KEY EVENTS:

** U.S. Sept international trade deficit - Nov. 7 Tuesday (7:00 p.m. IST)

** U.S. initial weekly jobless claims week to Oct. 30 - Nov. 9, Thursday (6:00 p.m. IST)

** India Sept industrial output - Nov. 10, Friday (5:30 p.m. IST)

** U.S. Nov U Mich sentiment prelim - Nov. 10, Friday (8:30 p.m. IST) (Reporting by Dharamraj Dhutia and Jaspreet Kalra; Editing by Sohini Goswami and Dhanya Ann Thoppil)