By Khushi Malhotra

MUMBAI, March 4 (Reuters) - Indian government bond yields ended barely changed on Tuesday as the impact of the slide in U.S. yields was offset by heavy debt supply from states.

The yield on the 10-year benchmark note IN067934G=CC ended at 6.7447%, compared with its previous close of 6.7383%.

"The bond market is not reacting to the lower trajectory of U.S. yields because the prevailing liquidity and rupee situation is impacting the market substantially," said Gopal Tripathi, head of treasury and capital markets at Jana Small Finance Bank.

"Yields are likely to trade in a narrow range for now."

Longer-dated U.S. Treasury yields fell on Monday, and extended their decline in Asian hours after weaker manufacturing data spurred bets that the Federal Reserve may cut rates by 75 basis points in 2025.

Markets were anticipating just about 25-basis-point rate cut at the start of the year. The Fed will announce its policy decision later this month.

Indian bond yields briefly tracked the drop in U.S. peers, but came off lows as higher-than-expected state debt supply soured demand.

Indian states raised 505 billion rupees ($5.79 billion) via bonds at cutoff yields that were higher than expectations, highlighting dwindling appetite for debt in the last month of the financial year that ends on March 31.

The quantum was highest in a year and over 100 billion rupees more than planned earlier. States are scheduled to raise another 1.35 trillion rupees in March, with many expecting that number to be exceeded.

There are likely fewer buyers in the market, as investors expect banking system liquidity to tighten further during March due to tax payouts, Jana Small Finance's Tripathi said.

"The new borrowing calendar will start from April, and traders would want a lighter book during that time, so people will try to clean up a bit right now."

($1 = 87.2650 Indian rupees)

(Reporting by Khushi Malhotra; Editing by Mrigank Dhaniwala)

((khushi.malhotra@tr.com))