At 9:15 a.m (0345 GMT), the benchmark 10-year bond yield was at 8.33 percent, steady from Monday's close. It is expected to move in an 8.33-8.37 percent range, traders said.

After market hours on Monday, the central bank announced a 120-billion-rupee ($2.3 billion) debt sale. The government is set to sell on Friday 40 billion rupees of 7.83 percent 2018 bonds, 50 billion rupees of 8.79 percent 2021 bonds, and 30 billion rupees of 8.97 percent 2030 bonds.

Pradeep Madhav, managing director of STCI Primary Dealership, said the market would be rangebound as traders await a buyback announcement. The size and choice of securities in the buyback will set the direction, he said.

Bond yields have dropped 16 basis points in the last two sessions, after the central bank held rates steady and said its next move was likely to be an easing as risks to economic growth have increased.