Reuters Market Eye - India's benchmark 10-year bond yield up 4 basis points on the day at 8.45 percent, but sharply off the day's high of 8.62 percent tracking a recovery in the rupee from record lows.
The partially convertible rupee at 65.14/15 per dollar, off its record low of 65.56 but still sharply weaker than its close of 64.11/12 on Wednesday.
Some traders speculated the RBI was buying bonds on the electronic system helping the recovery in debt, though it was not a universal view.
Traders will continue to monitor the rupee's movements for further direction.
(Reporting by Swati Bhat)