MUMBAI: India's benchmark 10-year bond yield fell 6 basis points to 8.57 percent, on the back of the central bank's scheduled debt purchase on Wednesday and in the absence of a bond auction this week.

The yield had dropped as much as 8 basis points to 8.55 percent at open.

India's central bank said it would buy up to 100 billion rupees of bonds via open market operations on Jan. 22.

The cancellation of last week's debt sale and the absence of any auction till the policy is expected to boost bonds through the session, dealers said.