Indian government bond yields ended the week steady as traders refrained from placing large bets amid lack of fresh triggers.

The benchmark 10-year yield ended at 7.0572% on Friday, after closing at 7.0764% in the previous session. The yield fell merely 2 basis points this week.

Bond yields, however, inched lower on Friday as market participants digested a sharp jump in the domestic economic print and latest data from the United States.

India's economy grew 8.4% in the October-December quarter, its fastest pace in one-and-a-half years, led by strong manufacturing and construction activity.

The economy grew much faster than market estimates of 6.6% and also quickened from 7.6% in the previous three months.

Asia's third-largest economy revised its growth estimate for the current fiscal year to 7.6% from 7.3%.

"The robust real GDP growth suggests that policy conditions will remain tight in the April policy and Reserve Bank of India (RBI) will likely shift its policy stance to 'neutral' in the June policy," said Tanvee Gupta Jain, economist at UBS India.

In February, the central bank kept rates unchanged for a sixth consecutive time at 6.50% and reiterated its commitment to meet the 4% inflation target on a sustainable basis.

"As India's real policy rate also starts inching into restrictive territory (amid faster-than-expected disinflation), it seems the monetary policy committee may not be in any hurry to change policy settings," Jain added.

However, the third-quarter GDP print may be overstating growth, economists said, pointing to a more modest increase in gross value added in the economy.

Meanwhile, the 10-year U.S. bond yield remained above 4.25% as the latest personal consumption expenditures price index did little to change rate cut expectations from the Federal Reserve.

(Reporting by Bhakti Tambe; Editing by Sohini Goswami)