MUMBAI, March 1 (Reuters) - Indian government bond yields are likely to trend higher on Friday, as stronger-than-expected economic growth could encourage the central bank to continue its fight against inflation, delaying rate cuts.

The benchmark 10-year yield is expected to hover in a 7.05%-7.10% range, following its previous close of 7.0764%, a trader with a private bank said.

India's economy grew 8.4% in the October-December quarter, its fastest pace in one-and-half years, led by strong manufacturing and construction activity. The economy grew much faster than market estimates of 6.6% and also quickened from 7.6% in the previous three months.

Asia's third-largest economy revised its growth estimate for the current fiscal year to 7.6% from 7.3%.

Growth was faster than expected by the Reserve Bank of India (RBI), which means the central bank will see little urgency to cut rates while they await for comfort on inflation, Barclays said.

"While there is the capacity to ease monetary policy, in our view, we now push back our rate cut call from Q2 to Q3 (July-September)," Rahul Bajoria, MD and head of EM Asia at Barclays said in a note.

In February, the central bank kept rates unchanged for a sixth consecutive time and reiterated its commitment to meet 4% inflation target on a sustainable basis.

"Though we may not see a major selloff, the data definitely gives more weightage to caution that the RBI has shown while going slow in easing, be it liquidity management or rate cuts," the bond trader said.

Meanwhile, the 10-year U.S. bond yield remained above 4.25%, as the latest personal consumption expenditures price index did little to change rate cut expectations from the Federal Reserve. KEY INDICATORS: ** Brent crude futures 1.7% lower at $82.20 per barrel, after easing 1.2% in the previous session ** 10-year U.S. Treasury yield at 4.2600%, two-year yield at 4.6353% (Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)