The benchmark 10-year bond yield, 6.90% maturing 2019 ended at 6.97%, higher than 6.91% at Wednesdays close. Gains in local shares also pumped up dollar sales by other custodian banks and helped the rupee, they added.
It closed at 48.35/36 per dollar, 0.1% stronger than its previous close of 48.42/43. In early trade, the rupee fell to as much as 48.58, its weakest since July 22. The market is awaiting the cut-off yields at Fridays auction, a trader with a foreign bank, said.
The government will sell three bonds maturing in 2014, 2021 and 2027 as part of its revised first-half borrowing plan of Rs 2.99 trillion.
Meanwhile, rupee bounced off a one-week low on likely dollar sales by a large foreign bank which, dealers said, could possibly be the receipts towards the Adani Power initial share offer currently underway. JP Morgan and HSBC were among the other major sellers in the market, dealers said.