MUMBAI, Dec 18 (Reuters) - Indian government bonds are

expected to trade largely unchanged on Wednesday after the

benchmark yield breached a key level in the previous session, as

investor focus remains on the Federal Reserve's monetary policy

decision and outlook.

The 10-year yield is likely to move between

6.73% and 6.77%, a trader with a private bank said, compared

with the previous close of 6.7588%.

"More than the decision, the economic projections as well as

the dot plot for 2025 are important triggers for the market,

which will dominate the next direction for Treasuries as well as

local bonds," the trader said.

The Fed's policy decision will come after Indian markets

close on Wednesday. While the U.S. central bank is widely

expected to cut interest rates by 25 basis points, markets are

fearing an uncertain outlook and cautious commentary for 2025.

Inflation remains above the Fed's 2% target, which is

expected to be highlighted by the central bank and could go

against the doves.

The debt market will also focus on the Fed's quarterly

economic projections and the dot plot, which had showed in

September a policy rate of 3.4% by the end of 2025.

The 10-year Treasury yield remained around the 4.40% mark in

Asia hours, with the odds of a 25-bp cut at over 97%. However,

the chances of a reduction in January are just around 16%,

according to the CME FedWatch Tool.

Locally, markets are awaiting debt supply as well as minutes

of the Reserve Bank of India's December meeting, both due on

Friday.

New Delhi aims to raise 290 billion rupees ($3.42

billion)through sale of bonds, which includes a new five-year

bonds.

The RBI maintained status quo on policy rates earlier this

month, but infused liquidity into the banking system through a

cut in banks' cash reserve ratio.

KEY INDICATORS:

** Brent crude futures 0.25% higher at $73.35 per

barrel, after easing 1% in the previous session

** Ten-year U.S. Treasury yield was at 4.3908%;

two-year yield was at 4.2384%

** RBI to auction treasury bills worth 190 billion rupees

($1 = 84.8980 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Subhranshu Sahu)