MUMBAI: Indian government bonds fell in early deals on Friday, as market participants braced for large auctions, putting the focus back on demand-supply dynamics. New Delhi and states will raise an aggregate of 750 billion rupees ($8.25 billion) in a span of Friday and Monday. “Market is getting ready for heavy supply in the next two sessions, bringing demand–supply balance back to the fore,” a trader with a private bank said. The benchmark 6.48% 2035 bond yield was at 6.7062% as of 10:10 a.m. IST, after ending at 6.6943% on Thursday. Bond yields move inversely to prices. New Delhi will sell the benchmark bond later in the session, in its last sale for this financial year. The pricing would act as a key directional driver for markets for March. This would be followed by a 431.3 billion rupee state debt sale on Monday, with the quantum nearly 75 billion rupees higher than the scheduled fundraising. While the 10-year bond has struggled recently, ultra-long bonds have seen an increase in demand, likely from insurance companies after Reuters reported that several market participants have sought lowering or maintaining the share of 30-to-50-year bonds in next fiscal year’s supply. India’s fiscal year runs April through March. Focus will also be on India’s economic growth data for October-December, which would be the first under a new series. The data will be released at 4:00 p.m. IST. A Reuters poll predicts growth to be at 7.2%.