Indian bond yields may edge up ahead of supply

MUMBAI, May 14 (Reuters) - Indian federal bond yields are
seen rising on Wednesday as investors stay on the sidelines
ahead of debt auctions and as record-high oil prices trigger
concerns of action by policy makers to check inflationary
pressures.

* The 10-year federal bond yield <IN082418G=CC> ended at
7.83 percent on Tuesday, up from Monday's close of 7.79
percent. In early deals, it had hit 7.77 percent, its lowest
since March 25.

* India's central bank is selling 55 billion ($1.3 billion)
rupees of treasury bills on Wednesday, and traders are waiting
for the results to gauge whether investor appetite for debt is
intact.

* Oil surged to a record peak near $127 on Tuesday after
OPEC producer Iran said it was studying a plan to cut output.
[O/R]. Oil is the country's biggest import and any change in
state-set prices directly impacts headline inflation.
($1=42.1 Indian rupees)
(Reporting by Saikat Chatterjee; Editing by John Mair)