Indian government bond yields rose this week, partially reversing the fall triggered by a fiscally-prudent federal budget, as the central bank did little to boost hopes of early rate cuts.

The benchmark 10-year yield ended at 7.1067%, the highest level since Jan. 31, following its previous close of 7.0789%. The yield rose 5 basis points this week, the most since week ended Jan. 5.

The benchmark yield broke a key resistance level of 7.10% on Friday after weaker-than-expected demand a weekly debt sale.

A day earlier, the Reserve Bank of India (RBI), in its last monetary policy decision for this fiscal year, kept key rates and policy stance unchanged, while reiterating its commitment to lower inflation to target.

"Since there was no major hint from the central bank on rate cuts, aggressive bets taken by the market got unwound," Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank, said.

"As expected the benchmark bond yield has moved towards the 7.10%-7.12% zone. But I do not think the yield may rise much from this point."

RBI Governor Shaktikanta Das said on Thursday that "the last mile of disinflation is always the most challenging". The central bank pegs retail inflation at 5.4% in 2023-24, and expects it to ease to 4.5% in the next financial year. Its inflation target is 4%.

Traders now await January retail inflation print, due on Monday, which will be followed by U.S. inflation on Tuesday, for further triggers.

A Reuters poll of economists expects India's inflation to have eased to 5.09% in January, from 5.69% in December.

The U.S. 10-year bond yield stayed elevated around the 4.15% mark as the odds of a rate cut from Federal Reserve in May declined to around 62% from 94% last week.

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)