Indian bond yields slip on hopes for no auctions

* Cbank yet to decide on 100 bln rupee auction this week

* Lower global oil prices boost sentiment (Updates to mid-morning)

MUMBAI, Jan 13 (Reuters) - Indian federal bond yields extended their decline for a second consecutive day on Tuesday as investors added positions on hopes there may not be fresh federal bond auctions this week.

At 10:38 a.m. (0508 GMT), the 10-year benchmark bond yield IN082418G=CC was at 5.64 percent, below Monday's close of 5.79 percent.

Volume was heavy at 45.45 billion rupees ($931.4 million) on the central bank's electronic trading platform with the 10-year bond being the most actively traded.

The 10-year yield dropped 41 basis points on Monday on hopes an indicative government borrowing plan of 100 billion rupees via federal bonds between Jan. 12 and 16 may be postponed in the absence of an announcement so far by the central bank.

"The buying coming in now is mainly due to a lack of announcement from the central bank, which is fuelling hopes that the auction may be postponned or may be combined with a buyback of intervention bonds," said Satish Jeurkar, head of fixed-income at Saraswat Co-operative Bank in Mumbai.

Dealers said yields could trade in a 5.55-5.70 percent band before any further auction announcement and expectations of central bank's purchases in the secondary market were also pressuring yields lower.

According to clearing house data, foreign banks, state-run banks and private banks were major sellers and mutual funds, pension companies, insurance firms and the central bank were buyers of bonds on Monday.