Indian bond yields seen in tight range

MUMBAI, Feb 10 - Indian bond yields should move in a narrow range on Wednesday in the absence of fresh triggers, but expectations for improvement in industrial data due later this week could weigh, dealers said.

* On Tuesday, the yield on the benchmark 10-year bond <IN10YT=RR> ended at 7.70 percent, after rising to 7.72 percent, its highest since Jan. 15. It had ended on Monday at 7.68 percent.

* On Monday, the government forecast the economy would grow 7.2 percent in the current fiscal year ending on March 31, picking up from 6.7 percent the previous year.

* Data on Friday is expected to show industrial output rose 12 percent in December from a year earlier, close to growth of 11.7 percent in November, a Reuters survey showed. [ID:nSGE6180FM]

* The central bank is due to auction 80 billion rupees of treasury bills on Wednesday.

* U.S. Treasury bonds fell across the board on Tuesday after the government's $40 billion auction of three-year notes posted lukewarm results and surging stocks pulled investors away from safe-haven debt. [US/]