* 10-yr bond yield ends down 1 bp at 8.80 pct     * FY15 borrowing figures slightly better than expectations     * Bonds likely to hold in tight range until liquidity improves      By Swati Bhat     MUMBAI, Feb 17 (Reuters) - Indian bonds closed marginally stronger on Monday after the government announced a slightly lower-than-expected borrowing number for the next fiscal year starting April, but profit-taking pulled yields off the session lows.     At the day's low of 8.76 percent, the 10-year yield was down 11 basis points over Thursday's close, prompting some profit-taking.     Finance minister P. Chidambaram has announced a fiscal deficit target of 4.1 percent of the gross domestic product, its lowest since 2007/08 and a gross market borrowing of 5.97 trillion rupees ($96.15 billion), below market expectations of a number closer to 6.2 trillion rupees.     "Though gross borrowing is slightly lower, cash rates have been trading close to the emergency funding rate, prompting large investors to stay away," said Sandeep Bagla, vice-president at ICICI Securities Primary Dealership.     "Despite improving macroeconomic fundamentals, bonds have remained largely at the same levels. With a fall in inflation, yields will gradually come down but investors are waiting for some trigger. Until then ranged trading will continue," he added.     The benchmark 10-year bond yield  
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   ended down 1 basis point at 8.80 percent after moving in a range of 8.76 percent to 8.85 percent during the session.     Traders expect the 10-year paper to remain in an 8.75 percent to 8.85 percent range this week.     The rupee's movements will remain a key trigger for bonds. The rupee  
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   closed slightly stronger, tracking share gains.  
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       Traders said the market was not expecting the government to announce another round of debt switch for 500 billion rupees in FY15 and it is likely to lead to some debt buying in the near-term.     In the overnight indexed swap market, the benchmark 5-year swap rate  
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   closed unchanged at 8.46 percent, while the 1-year rate  
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   ended 1 bp lower at 8.69 percent.      ($1 = 62.0900 Indian rupees)   (Editing by Prateek Chatterjee)  ((swati.bhat@thomsonreuters.com)(+91-22-61807353)(Reuters Messaging: swati.bhat.thomsonreuters.com@reuters.net))  Keywords: MARKETS INDIA BONDS/