Indian bond yields to rise ahead of sale

MUMBAI, Nov 6 (Reuters) - Indian federal bond yields are expected to rise on Friday as traders make space for a $1.9 billion government debt sale later in the day. A rise in longer-dated U.S. Treasury yields overnight will also weigh.

* The yield on the Indian 10-year benchmark bond IN069019G=CC ended at 7.29 percent on Thursday, one basis point above Wednesday's close of 7.28 percent, after falling as low as 7.24 percent during trade.

* A rally in stocks depleted the bid for safe-haven U.S. government debt on Thursday as investors showed a willingness to shoulder riskier assets. Stocks rose on the productivity gains, which promised better corporate profits, as well as on data showing improvement in the jobs market. [US/]

* However, big gains in U.S. workers' productivity and expectations the Federal Reserve will keep interest rates near zero well into next year supported short-dated U.S. government debt prices.

* The Indian government will sell 90 billion rupees ($1.9 billion) worth of bonds on Friday, which traders said would attract a good response. ($1 = 47 rupees) (Reporting by Swati Bhat)