At 9:31 a.m. (0401 GMT), the 10-year benchmark bond yield was at 8.33 percent, down 2 basis points from its Friday's close. It moved 1 basis point lower since opening.

The 10-year yield had surged 17 basis points last week as hopes of further debt buybacks by the Reserve Bank of India were dampened after the central bank lowered cash reserve ratio (CRR) for banks by 50 basis points in its policy review to infuse liquidity into the banking system.

The RBI said the CRR cut would release around 320 billion rupees ($6.49 billion) into the banking system.