India is due to post April-June gross domestic product data on Friday, with traders citing rising expectations for sub-5 percent growth.
Bullish cut-offs at Friday's sale of 150 billion rupees of bonds also extended gains into a second session.
Bond yields have fallen since their monthly peak of 8.26 percent in mid-August on continued signs of slowing growth and data showing headline wholesale price inflation falling to a three-year low.
The falling yields have come despite the Reserve Bank of India's continued hawkish stance.
"It will be difficult for RBI to ignore a sub-5 percent kind of print," said Anuj Tagra, a fixed income dealer with Union Bank of India.
"The good demand at last week's auction is also helping sentiment," he added.
Tagra said he expects the 10-year to trade in a range of 8.16 to 8.23 percent.
The benchmark 10-year bond yield fell 2 basis points to close at 8.19 percent.
Total volume on the central bank's electronic trading platform was at a moderate 193.85 billion rupees.
The benchmark 5-year overnight indexed swap rate closed 2 bps lower at 7.12 percent while the 1-year rate edged down 1 basis point to 7.79 percent.