Indian bond yields at near 2-mth lows on global cues

* Risk aversion after Dubai woes boosts demand for debt

* Ample cash levels, ebbing debt supplies support prices (Updates to mid-morning)

MUMBAI, Nov 27 (Reuters) - Indian federal bond yields eased to near two-month lows on Friday as risk aversion dominated market sentiment after Dubai's debt problems revived concerns about the health of the global financial system.

Dealers said rising food prices and the possibility of an early withdrawal of easy monetary conditions prevented yields from falling further.

At 10:02 a.m. (0432 GMT), the yield on the 10-year benchmark bond IN069019G=CC was at 7.16 percent, after falling to 7.14 percent, which is its lowest since Sept. 29. It had ended at 7.17 percent on Thursday.

Volumes were moderate at 33.85 billion rupees ($723 million) on the central bank's trading platform.

"The market is mainly looking at the weakness in global shares and the resultant risk aversion," said a senior trader at a foreign bank.

Dubai said on Wednesday it wanted creditors of Dubai World and property group Nakheel to agree a debt standstill as it restructures Dubai World, the conglomerate that spearheaded the emirate's breakneck growth. [ID:nGEE5AO2L1]

"Bond yields will fall slightly but the finance minister's comments on inflation would prevent a big rally," the senior trader said.