MUMBAI, June 24 (Reuters) - The Indian rupee and government bonds are likely to draw support from inflows after domestic bonds are included in JPMorgan's emerging market debt index this week, while key U.S. inflation data is also expected to provide further direction.

The rupee closed at 83.5325 against the U.S. dollar on Friday, little changed week-on-week. The currency hit a record low of 83.6650 on Thursday, pressured by dollar outflows and weakness in the Chinese yuan.

About $2 billion of inflows are expected around June 28 on account of India's inclusion in the widely tracked JPMorgan index, which should help the rupee, traders said.

Given the inflows, the rupee could see some gains this week, an FX trader at a foreign bank said. While any further weakness in the Chinese yuan will be key, "I don't think the Reserve Bank of India (RBI) will allow runaway moves in the rupee," the trader added.

Market focus will also be on more U.S. economic data including the core personal consumption expenditure (PCE) inflation print - the Federal Reserve's preferred inflation gauge - due on June 28.

The dollar-rupee pair is likely to trade with a "buy on dips" bias this week, drifting in the 83.40-83.80 range, said Abhilash Koikkara, head of forex and rates at Nuvama Professional Clients Group.

Meanwhile, the 10-year Indian government bond yield ended at 6.9723%% on Friday, easing 1 basis point (bp), after easing 3 bps in the prior week. Traders expect the benchmark yield to move in the 6.92%-7.00% range this week.

Bond yields tracked U.S. yields lower last week on bets of 50 bps of Fed rate cuts in 2024. Markets are now gearing up for Indian government bonds' inclusion in the JPMorgan emerging market debt index on June 28.

"Index inclusion is a major event for the bond market, and we could see some easing in yields," said Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership.

Last week, inflows into bonds under the Fully Accessible Route (FAR) crossed the $10 billion mark, since the inclusion's announcement in September last year.

Foreign investors have been shifting from shorter-duration bonds to longer ones, with maturities of nine years and above now comprising nearly 60% of purchases since September.

KEY EVENTS: ** U.S. June consumer confidence - June 25, Tuesday (7:30 p.m. IST) ** U.S. May new home sales - June 26, Wednesday (7:30 p.m. IST) ** U.S. initial weekly jobless claims week to June 17 - June 27, Thursday (5:30 p.m. IST) ** U.S. May durable goods - June 27, Thursday (6:00 p.m. IST) ** U.S. Jan-Mar final GDP - June 27, Thursday (6:00 p.m. IST) ** India May fiscal deficit data - June 28, Friday (3:30 p.m. IST) ** India May infrastructure output data - June 28, Friday (5:30 p.m. IST) ** U.S. May personal consumption expenditure, core PCE index - June 28, Friday (6:00 p.m. IST) ** U.S. June U Mich sentiment - June 28, Friday (7:30 p.m. IST) (Reporting by Dharamraj Dhutia and Jaspreet Kalra; Editing by Sonia Cheema)