Traders said they were expecting the 9.15 percent 2024 bond, which had witnessed heavy volumes in recent sessions, to be part of the buy back.

Late on Tuesday, the RBI said it will buy back 8.07 percent 2017, 7.80 percent 2021, 8.13 percent 2022 and 8.26 percent 2027 bonds on Jan 6.

The 10-year benchmark bond yield was at 8.37 percent, higher than Tuesday's close of 8.36 percent. It spiked to 8.40 percent in early trades.

Traders will await results of a 100-billion-rupee treasury bill auction due later in the day.

On Friday, the government will sell 140 billion rupees of debt, comprising 40 billion rupees of 7.83 percent 2018 bond, 70 billion rupees of 8.79 percent 2021 bonds and 30 billion rupees of 8.28 percent 2032 bonds.

India's capital market regulator has said that any new debt limits to be allocated to foreign funds through the auction route cannot be reinvested, a move which traders said also hurt sentiment.