At 9:15 a.m. (0345 GMT), the 10-year benchmark bond yield was unchanged at Thursday's close of 8.25 percent. It is expected to move in a range of 8.23 percent to 8.28 percent during the day, traders said.

Some traders expect a slight uptick in bond yields during the day as expectations of a cut in cash reserve ratio by the Reserve Bank of India on Jan. 24 have dissipated, following comments from top policy makers and strong factory output in November.

The view the central bank will support market sentiment through more debt buybacks could limit the rise in yields, traders said. The RBI has offered to buy upto 120 billion rupees of bonds through open market operations on Friday.

RBI Deputy Governor Subir Gokarn on Thursday said there was no direct link between food inflation and monetary policy, adding that it was relevant only in terms of impact on inflationary expectations.

The Indian government will sell 40 billion rupees of a new 8-year security, 60 billion rupees of 9.15 percent 2024 bonds and 40 billion rupees of 8.97 percent 2030 bonds.