* Traders eye cbank plan for FY11 government borrowing * India could see double-digit inflation in March - fin min * Cbank to auction $1.8 bln of tbills on Wednesday (Updates to mid-morning) MUMBAI, March 17 (Reuters) - Indian federal bond yields eased on Wednesday, tracking a fall in U.S. yields as the Federal Reserve pledged to keep rates low for an extended period, but concerns on heavy government borrowing from April weighed. At 10:13 a.m. (0443 GMT), the yield on the 10-year benchmark bond IN10YT=RR was at 7.97 percent from the previous close of 7.99 percent. Volumes were low at 15.85 billion rupees ($349 million) on the central bank's trading platform. "Given our inflation and growth conditions, I think it is difficult to follow the U.S. The only positive for the market is trader positions are light," said a senior trader at a foreign bank. The government is set to borrow a record 4.57 trillion rupees in the fiscal year beginning April and traders are awaiting a central bank calendar for the size, maturity and frequency of weekly auctions. India could see double-digit inflation in March, Finance Minister Pranab Mukherjee said on Tuesday. [ID:nBMA007147] India's headline inflation topped expectations and came within touching distance of 10 percent in February, making a rate increase by the central bank all but inevitable at its scheduled April policy review. [ID:nSGE62E085] U.S. Treasury debt prices rose on Tuesday after the Fed, in its latest policy statement, reiterated plans to keep benchmark interest rates exceptionally low for an extended period. [US/] Traders said they would also watch the results of an 80-billion-rupee treasury bill auction later in the day. The benchmark five-year interest rate swap was at 6.95/99 percent from the previous close of 7.02/05 percent. [IN-SWAPS] ($1 = 45.4 rupees) (Reporting by Neha D'silva; Editing by Ranjit Gangadharan)

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