India 10-year bond yield seen starting higher after sell-off in last session

MUMBAI: India's benchmark 10-year bond yield, which ended at 9.07 percent on Friday, is seen opening mildly stronger after a sell-off in the previous session.

Sentiment will be supported by a lower quantum in the state development bond auction, with around 500 bln rupees coming up for sale lower than the usual 800 bln rupees or more in weekly auction, a senior trader with a foreign bank said.

Traders will watch for the security selection in auction this week after the first government bond sale in fiscal 2014/15 saw devolvement.

Bond yields are seen moving in the 9.05 percent to 9.10 percent range during the day.