MUMBAI: Indian bond yields are expected to have an upward bias in thin volumes on Tuesday, as the market fears a supply glut if the government indeed announces a bulky April-September borrowing plan.

The Indian government is likely to borrow between 3.6 trillion and 3.8 trillion rupees ($70.18 billion to $74.07 billion) from the domestic market in the first half of the fiscal year that starts in April, primary dealers told Reuters.

The gross market borrowings by the government for 2012/13 has been set at 5.7 trillion rupees, higher than an expected 5.3 trillion rupees.

The 10-year benchmark bond yield is expected to open around 8.48 percent and move in a band of 8.48 percent to 8.52 percent. It closed at 8.47 percent on Monday, 9 basis points higher from Thursday's close.

The continuing rise in global oil prices and its impact on domestic inflation and interest rates if the government allows a price increase in retail fuel costs may also weigh on bond prices, traders said.

Oil rose on Monday as comments from US Federal Reserve Chairman Ben Bernanke reinforced expectations that interest rates will be kept low. Those comments bolstered markets and weakened the dollar.