MUMBAI: Indian federal bond yields were higher on Friday, the year's last trading session, as traders fretted the government might again increase its borrowing for the current fiscal year ending in March.
At 9:20 a.m.(0350 GMT), the benchmark 10-year bond yield was at 8.56 percent, up 2 basis points from Thursday's close, when it had risen 6 basis points.
Traders are also cautious ahead of a $2.82 billion debt sale later in the day.
On Thursday, the Reserve Bank of India bought back 81.09 billion rupees of bonds, against an offer of buying up to 120 billion rupees, which also weighed on sentiment.
The government will sell 30 billion rupees each of 7.99 percent 2017 bonds, 8.28 percent 2027 bonds and 8.83 percent 2041 bonds, as well as 60 billion rupees of 9.15 percent 2024 bonds.
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