MUMBAI: India's benchmark 10-year bond yield dropped sharply at open after the government stuck to its borrowing schedule for the second half of the fiscal year, but soon turned flat as there was no clarity yet on the bond switch programme.

The government will borrow 2.35 trillion rupees from the market in the second half of the fiscal year starting in October it said, but did not detail how the 500-billion-rupee bond switch will happen.

The rupee weakened on the back of lower Asian currencies. For a snapshot of Asian currencies see:

The benchmark 10-year bond yield opened down 8 basis points at 8.77 percent. The partially convertible rupee dropped to 62.79/80 per dollar versus its previous close of 62.60/61 on Monday.