Indian bond yields to rise ahead of supplies

MUMBAI, Aug 27 (Reuters) - Indian federal bond yields are expected to rise from two-week lows on Wednesday as investors pare positions ahead of a 40 billion rupee ($913 million) treasury bill auction and firmer oil prices.

* Oil CLc1 traded above $116 a barrel on Wednesday. India imports a majority of its oil and any change in state-set prices impacts inflation.

* The 10-year bond yield IN082418G=CC ended at 8.89 percent on Tuesday, off an intraday low of 8.87 percent, which was its lowest since Aug. 12, according to Reuters data. It had ended at 8.97 percent on Monday.

* Dealers said a slew of economic data ahead would provide near-term trading triggers. Weekly inflation data is due on Thursday and quarterly growth data is expected on Friday. For a story on GDP, please click on [ID:nBOM256322] ($1 = 43.8 rupees) (Reporting by Saikat Chatterjee; Editing by Ranjit Gangadharan)