MUMBAI - Indian government bond yields dipped on Friday, with the benchmark bond yield ending below its technical level after stronger-than-expected demand at debt sale triggered short covering, while a slide in U.S yields also aided.

Yields, however, ended higher for the week following hawkish commentary from global central banks.

The benchmark 7.26% 2033 bond yield ended at 7.0726%, after closing at 7.0871% in the previous session. For the week, the yield rose three basis points.

New Delhi raised 310 billion rupees ($3.78 billion) through the sale of bonds, including the liquid 7.41% 2036 paper, which likely attracted buying from a large corporate.

"Strong demand at the auction and U.S. yields moving a tad lower led to similar action in Indian bond yields," said VRC Reddy, treasury head of Karur Vysya Bank.

"We expect the benchmark bond yield to trade in 7.05%-7.10% for the rest of the month."

Short sellers were also unsure of any further immediate rise in yields after the breach of key technical levels in the absence of a fresh trigger.

Meanwhile, members of India's six-member monetary policy committee (MPC) appeared increasingly divergent in their views on the future course of rate hikes, but all three internal members reiterated the pause was only for June.

A narrower interest rate differential with the U.S. is unlikely to prompt the MPC to raise rates, but a rebound in inflation certainly could, three external members said in separate interviews.

The RBI kept its key lending rate steady for a second straight meeting on June 8, but signalled monetary conditions will remain tight as it looks to attain the 4% inflation target.

Comments from Federal Reserve Chair Jerome Powell suggesting rates could go higher continued to hurt. Last week, the Fed kept rates unchanged but warned of a 50-bps hike in 2023.

($1 = 82.0120 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sohini Goswami)