The benchmark 10-year bond yield closed at 8.52%, unchanged from its Tuesdays close. It had risen to as high as 8.56% in opening trades, its highest since May 10.
The RBI is suspected to have recently purchased bonds in secondary markets, in addition to the open market operations it had conducted in each of the previous three weeks.
The latest data from the RBI shows they had bought a net R12,350 crore worth of bonds in the week to May 18. Total volumes on the RBIs electronic trading platform were at a high R167.35 crore.