MUMBAI: India's benchmark 10-year bond yield opened lower at 8.65 percent from Wednesday's close of 8.67 percent, tailing US bond yields after the Federal Reserve took a more dovish stance than some had expected at its June meeting.

However, concerns over rising global oil prices weighed with continuing violence in Iraq.

Brent crude rose past $114 a barrel to a nine-month high on Wednesday.

The benchmark yield is expected to trade in a range with some buying likely from state-run banks.