At 9:17 a.m. (0347 GMT), the 10-year benchmark bond yield was at 8.31 percent, one basis point higher than Monday's close.

Traders expect the yield to move in a band of 8.26 percent to 8.35 percent.

Indian industrial output in January grew at its fastest pace in seven months, powered by a surge in manufacturing including consumer non-durables, a sign of strength in a sluggish economy.

The RBI will leave its key repo rate unchanged at 8.50 percent, 17 of the 20 analysts polled by Reuters on Monday said.