Indian sovereign bonds were flat early on Tuesday as value buying after a two-day selloff was offset by caution ahead of a large state debt auction. The benchmark 6.48% 2035 bond yield was at 6.7538% at 10:35 a.m. IST after settling at 6.7559% on Monday. Yields eased slightly across maturities. Traders remained wary as states are set to auction 486.15 billion rupees ($5.36 billion) of bonds later in the day, about 60 billion rupees above schedule and the largest weekly issuance so far this year. Investors had sold off debt in the last two sessions after the RBI did not announce any fresh liquidity measures in its policy outcome on Friday, while keeping the repo rate unchanged as expected.