MUMBAI: Indian government bond yields are expected to ease on Monday after hopes for a rate cut were reinforced by sluggish factory data last week.

The wholesale price inflation rate, due around 0630 GMT, is likely to have slowed marginally in March, a Reuters poll showed.

Analysts expect the Reserve Bank of India to cut its benchmark repo rate by 25 basis points to 8.25 percent at a policy review on Tuesday. It would be the first rate reduction in three years.

Traders said the RBI's bond purchases from the secondary market in the week ended April 6, in addition to buying through open market operations, could ease the supply glut fears triggered by the government's huge borrowing plan for 2012/13.

The 10-year benchmark bond yield, which fell 22 basis points last week to 8.47 percent, is likely to open around 8.45 percent and move in a 8.40 to 8.46 percent band, traders said.