India's benchmark 10-year bond yield 2 basis points higher at 8.82 percent. Dealers awaiting Rs 8530 crore worth of state loan auction supply on Tuesday.
Some apprehensions among dealers after the last state loan auction had long tail for some states.
A recent RBI report on pricing benchmarks has recommended that in the absence of required trading volume in state development loans (SDLs), the spread discovered in the last two SDL auctions, subject to appropriate qualifying criteria, may be used in place of existing fixed 25bps spread.
Also Read: India's economy 'stuck in a rut', says HSBC
The 10-year bond yield is seen holding in a range of 8.76 to 8.84 percent in the near term.
US Treasury debt prices inched up on Friday as investors questioned whether a string of weaker-than-expected economic data is due to severe weather affecting activity in the short term or a symptom of a more structural economic slowdown.
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