Indian bond yields rise on cash concerns, oil price

(Updates to early trade)

MUMBAI, May 7 (Reuters) - Indian federal bond yields moved further away from one-month lows on Wednesday on expectations of of tighter cash conditions, with worries about the impact of record oil prices on inflation also tempering recent bullishness.

At 10:15 a.m. (0445 GMT), the 10-year bond yield <IN082418G=CC> was at 7.84 percent, higher than Tuesday's close of 7.82 percent. The yield fell to 7.78 percent on Monday, its lowest since March 27

"There has been a good run and so some amount of consolidation will happen at these levels," said Manoj Swain, head of trading at Standard Chartered Bank.

The 10-year yield is about 30 basis points below its level before an April 29 monetary policy review, when the central bank said it would raise banks' reserve requirements but kept its interest rates unchanged.

Swain expects the 10-year yield to trade between 7.75 percent and 7.90 percent this week.

"There is not enough reason to break either side," he said.

The central bank will sell 65 billion rupees ($1.6 billion) of treasury bills on Wednesday and 100 billion rupees of bonds on Friday.

Another 90 billion rupees of cash will be drained from the banking system when a 25 basis point rise in the cash reserve ratio (CRR) for banks takes effect on Saturday. Another CRR increase of 25 basis points will take effect on May 24.