At 9:16 a.m. (0346GMT), the 10-year bond yield was at 8.56 percent, compared with Monday's close of 8.49 percent.

The government will sell 30 billion rupees each of 7.99 percent 2017 bonds, 8.28 percent 2027 bonds and 8.83 percent 2041 bonds, as well as 60 billion rupees of 9.15 percent 2024 bonds on Friday.