"After a one-month break, we will again start with a mammoth borrowing programme, and hence bonds should remain under selling pressure," Tripathi added.
Indian states raised 192.37 billion rupees ($2.32 billion) through the sale of bonds earlier in the day, but the quantum was lower than planned as some states did not borrow amid rising yields.
States paid yields ranging between 7.65% and 7.71% for 10-year papers, largely in line with estimates.
India aims to gross borrow 15.43 trillion rupees through the sale of bonds in the next financial year, wherein supply may outstrip demand, leading to a further rise in yields, traders have said.
Traders will now focus on the minutes of the RBI's Monetary Policy Committee meeting, due Wednesday, which will provide more clarity on the views of the members on inflation dynamics and help shape the interest rate trajectory.
The RBI has raised the policy rate for the sixth consecutive time, taking it to 6.50% and kept the door open for more tightening, highlighting core inflation concerns. Retail inflation in January rose over 6.52%, above the RBI's upper tolerance range for the first time since October, further cementing bets that the central bank could hike the rate to 6.75% in April. ($1 = 82.7850 Indian rupees) (Reporting by Dharamraj Dhutia Editing by Sonia Cheema)
