MUMBAI: The Indian rupee saw a modest gain early on Monday while government bonds fell on Monday after the central bank last week announced additional steps to drain cash in a bid to prop up a currency trading at record lows.

The Reserve Bank of India (RBI) will auction 220 billion rupees ($3.61 billion) of government cash management bills every week, it said in a statement, without specifying for how many weeks the sales would last.

The first sale - a tranche of 110 billion rupees - takes place later in the day, with another 110 billion rupees scheduled for Tuesday.

The partially convertible rupee rose to as much as 60.45 per dollar in early deals compared to its close of 60.88/89 on Thursday. Financial markets were closed on Friday for a local holiday.

The benchmark 10-year bond yield rose 11 basis points to 8.23 percent.