MUMBAI: Indian government bond yields are expected to rise early on Thursday as traders await industrial output around 0530 GMT for cues on the central bank's rate action next week and before a 150 billion rupee ($2.92 billion) debt sale on Friday.

February industrial output probably slowed a tad to 6.6 percent from January, as growth in the manufacturing and consumer non-durables sectors likely moderated, a Reuters poll showed.

The 10-year benchmark bond yield is expected to open around 8.57 percent and rise to as much as 8.60 percent, traders said.

It closed down 4 basis points on Wednesday at 8.55 percent on rising expectations for a rate cut by the Reserve Bank of India next Tuesday. Economists polled by a Reuters poll expect a 25 basis point reduction in the repo rate to spur growth.