MANILA, Philippines -- Debt yields are expected to hug a narrow range of 2-5 basis points with a slight upward bias going into the rest of the week, but hopes of an interest rate cut this month will help limit the rise.

Debt traders said yields were under pressure from rising risk aversion in global markets, but anticipation of lower overnight rates will likely prevent yields from climbing beyond 5 basis points.

Yields in the short-to-medium term bills rose an average of 4 basis points last week.

"The bias for the week is upward due to lack of fresh leads, negative sentiment from the United States and risk aversion continue to weigh down on the local market," a trader from a local bank said. "But this is being tempered by expectations of a cut."

The Philippine central bank, which reviews policy on Jan. 31, is expected to cut overnight rates by 25 basis points to match an expected reduction by the US Federal Reserve on Jan. 30.

Philippine monetary authorities cut rates four times last year to their lowest levels in 15 years.

The government plans to sell P6.5 billion of 91-day, 182-day and 364 day Treasury bills at 0500 GMT on Monday. Traders expect the rates to match secondary market sentiment and go up or down 2-5 basis points. Reporting by Karen Lema; editing by Carmel Crimmins

($1 = P40.87)