MUMBAI - Indian government bond yields were largely steady at the start of a busy week, as traders refrained from placing large bets ahead of domestic and U.S. November inflation data due on Tuesday.

The 10-year benchmark bond yield ended at 7.2829% on Monday, after ending the previous session at 7.2697%.

India's retail inflation likely picked up in November due to higher food prices after declining for three months, bringing it closer to the upper end of the Reserve Bank of India's (RBI) 2%-6% target range, a Reuters poll found.

The reading is expected to be at 5.70%, after declining in August, September and October.

In the U.S., headline prices are expected to have risen 0.1% in November, for an annual gain of 3.1%.

Domestic bond yields opened higher, tracking their U.S. peers which climbed after stronger-than-expected economic data trimmed bets of interest rates cuts.

U.S. yields jumped on Friday after data showed employers added more jobs than expected in November, leading traders to pare back expectations that the Federal Reserve could cut rates soon.

Markets have trimmed bets of a Fed rate cut to 42% in March from over 60% last week, and to 76% in May from nearly 100% earlier.

The Fed is due to announce its final monetary policy decision for 2023 on Wednesday, where no rate action is expected and markets will eye for the central bank's 2024 outlook.

The RBI's monetary policy decision on Friday did little to provide cues to the market, as it kept interest rates steady for the fifth consecutive meeting and avoided any major surprises, leading to muted reaction in bond yields.

The central bank is expected to remain on a long pause, according to Marzban Irani, chief investment officer of fixed income at LIC Mutual Fund.

"RBI has reiterated that it remains focused on ensuring disinflation to achieve the 4% target anchoring expectations of a prolonged pause in rate hikes."

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