Indian government bond yields were little changed early on Friday as traders awaited a large debt sale that will test demand, while oil prices and U.S. Treasury yields steadied.The benchmark 6.94% 2036 bond yield was flat at 6.9632% at 11:10 a.m. IST. It is on track for ‌a third consecutive ⁠weekly rise, ⁠up 5 basis points so far.Bond yields move inversely to prices.REC set to debut tokenised corporate bond sale next week: BankersIndia will launch tokenized corporate bonds next week using blockchain technology. State-run REC aims to raise five billion rupees through these innovative debt instruments. This marks India's first debt issue with instant settlement capabilities on a blockchain. The Reserve Bank of India's digital currency will facilitate these bond transactions. Only investors with active digital wallets can participate in this upcoming sale.New Delhi will ​auction 320 billion rupees ($3.39 billion) of bonds later in the day, including 210 billion ​rupees of a new five-year benchmark.Five-year notes have attracted strong demand in recent months, as banks likely channelled inflows from India's diaspora deposit scheme into the ​segment, which mobilised a larger-than-expected $127 billion.The inflows have ⁠pushed the ‌banking system liquidity surplus above 10 trillion rupees for ​the first ​time.Banks proposed using foreign-exchange sell/buy swaps to gradually drain surplus ⁠rupee liquidity at a meeting with the Reserve Bank ​of India on Thursday.Despite ample liquidity, bond market confidence ​has stayed subdued due to global risks and rising expectations of rate hikes.Overseas debt markets remain under pressure from the escalating U.S.-Iran conflict and higher oil prices, which have revived inflation fears and heightened fiscal concerns.Brent crude hovered near $95 a barrel in Asian trade, while the 10-year U.S. ‌Treasury yield held above 4.75%."Three forces will drive markets: the September 15 to 16 FOMC meeting, crude near $95, the ​biggest swing factor ​for domestic inflation, and ⁠the pace of RBI liquidity absorption," said Alok Sharma, head of treasury at ICBC.Federal Reserve Governor Christopher Waller said on Thursday he would support holding ​rates steady at the next policy meeting if incoming data confirms easing inflation pressures.RATESIndia's overnight indexed swaps fell as oil, U.S. yields steadied.The one-year rate was down 1 bp at 5.99%, while the two-year rate and the five-year rate both fell 1.75 bps to 6.17% and 6.4675%, respectively.