MUMBAI, June 16 (Reuters) - Indian bond yields hunted

for direction on Monday, as traders tracked oil price moves amid

geopolitical tensions and awaited cues from the U.S. Federal

Reserve's policy decision.

The yield on the benchmark 10-year bond was

at 6.2944%, as of 9:45 a.m. IST, compared with its previous

close of 6.2996%. The benchmark rose 6 basis points last week,

the most since week ended December 20.

"If Brent oil moves further over $75 per barrel, we could

see test of upside resistance levels," trader with a primary

dealership said.

Oil prices extended Friday's rise as renewed strikes by

Israel and Iran over the weekend increased concerns that the

battle could widen across the region and significantly disrupt

oil exports from the Middle East.

There were also concerns about disruptions to the Strait of

Hormuz, which sees passage of around a fifth of the world's

total oil consumption.

India imports a bulk of its crude oil needs and higher

prices could affect the nation's inflation outlook.

Bond yields have been witnessing an uptrend after the

Reserve Bank of India on June 6 surprised markets with a shift

in policy stance to "neutral", signalling limited scope for more

cuts.

This was followed by an announcement to stop daily repos,

which were ongoing since January, and led to fears that the

central bank may not be comfortable with overnight rates below

the policy rate.

RATES

Indian overnight index swap (OIS) rates were little changed in

early deals, after risning in the previous week.

The one-year OIS rate rose was at 5.54%,

while the two-year OIS rate was at 5.53%. The

liquid five-year OIS rate was at 5.77%. OIS

rates had jumped 7-9 bps last week.