New Delhi, Aug. 8 -- Government bonds dipped in early trading on Friday, as investors remained cautious ahead of the weekly debt sale that will test demand.

The yield on the benchmark10-year bondwas at 6.396%, as of 12:57 pm, while it closed at 6.3861 per cent on Thursday. Bond yields move inversely to prices.

Government is set to raise Rs.25,000 crore (equivalent to $2.86 billion) through the sale of seven-year ( Rs.11,000 crore) and 50-year bonds ( Rs.14,000 crore) in the debt auction today.

RBI'smonetary policy committee on Wednesday decided to hold repo rate Governor's statement lacked dovish sentiment, which pared rate easing bets.

This led to a decline in investor appetite fordebt, and traders said that demand for auction will b...