Strong October factory output data and a surprise fall in headline inflation in November have cemented hopes the Reserve Bank of India will stick to its previous guidance of a rate cut in the January-March quarter.
The benchmark bond yield ended unchanged at 8.14%. It fell to 8.13% in session, its lowest since October 30.
India's short-end 1-year OIS rate ended flat at 7.62%, after falling to 7.61%, a seven-week low.
The benchmark 5-year OIS ended 1 bp lower at 7.10%.