MUMBAI, June 5 (Reuters) - The Indian rupee is expected to decline this week on the back of elevated Treasury yields following the U.S. jobs report, while bond traders awaited the Reserve Bank of India's (RBI) monetary policy decision due on Thursday.

The rupee on Friday was at 82.3050 to the U.S. dollar. It was in a range of 82.27 to 82.78 last week.

The U.S. jobs report on Friday signalled employment increased more than expected in May, fuelling bets that the Federal Reserve might raise rates next week.

However, the unemployment rate rose more than expected and wage growth moderated, which could provide the U.S. Fed a reason to skip the rate hike at the next meeting.

U.S. near-maturity yields jumped following the report, but the probability of a Fed rate hike next week was almost unchanged at 30%. The USD/INR has excellent support around 82.30 and that combined with the U.S. yields suggests to us that the risks this week are on the upside, a trader said.

The RBI's monetary policy decision is due on June 8, when the central bank is expected to leave its key interest rate unchanged at 6.50%, according to a Reuters poll of 64 economists.

It surprised markets by maintaining a status quo on policy rates in April, having raised rates by 250 basis points in the previous year.

As the RBI and the committee appeared poised for a prolonged pause, they should change policy stance to better reflect this new reality, ICICI Securities Primary Dealership said.

The benchmark bond yield fell below the 7% mark again last week, and ended at 6.9823% on Friday, down three basis points for the week. Traders expect the benchmark yield to move in the 6.96%-7.04% range until the monetary policy decision is out.

The 10-year U.S. yield eased sharply last week, as bets of a pause in rates by the Fed increased. KEY EVENTS: • India May S&P Global Services PMI - June 5, Monday (10:30 a.m. IST) • U.S. May S&P Global Mfg PMI - June 5, Monday (7:15 p.m. IST) • U.S. April trade data - June 7, Wednesday (6:00 p.m. IST) • India monetary policy decision - June 8, Thursday (10:00 a.m. IST) • U.S. week to May 29 - initial jobless claim - June 8 (6:00 p.m. IST)

(Reporting by Sethuraman NR and Dharamraj Dhutia in Mumbai; Editing by Nivedita Bhattacharjee)