By Bhakti Tambe

MUMBAI, Sept 20 (Reuters) - Indian government bond

yields rose marginally on Friday but ended lower for the week,

after the U.S. Federal Reserve delivered a super-sized interest

rate cut, boosting investor sentiment.

The benchmark 10-year yield ended at 6.7626%,

compared to its previous close of 6.7577%, as traders booked

profits after the recent sharp fall.

The yield declined nearly three basis points (bps) this

week, after falling 6 bps in the previous week.

"The exuberance of the market participants was toned down,

given that the 'dot plot' is not showing aggressive rate cuts

until December 2024," Axis Asset Management said in a note.

The U.S. central bank kicked off its interest rate cut cycle

with a larger-than-usual 50 bps reduction on Wednesday.

Policymakers projected another 50 bps of cuts in 2024 and 100

bps in 2025, according to an updated dot plot.

However, futures markets are pricing a more aggressive

easing of nearly 75 bps over the Fed's next two policy meetings

in November and December.

India's central bank may consider changing stance or cutting

rates in October-December given recent global easing, such as

Indonesia's surprising rate cut and the Fed's move, Axis Asset

Management said.

Market participants will look out for U.S. jobless claims

and personal consumption expenditure price index reports next

week for further cues on the Fed's policy trajectory.

Local bond traders will also await the borrowing calendar

for the second half of the financial year, due next week. India

is expected to borrow 14.01 trillion rupees via the sale of

bonds this year.

Earlier in the day, New Delhi raised 310 billion rupees via

sale of bonds at a weekly auction, which also included the

10-year benchmark bonds.

(Reporting by Bhakti Tambe; Editing by Varun H K)