Inflation data to be released at 0630 GMT will be watched for clues on the Reserve Bank of India's policy review on Thursday.

At 9:30 a.m. (0400 GMT), the 10-year benchmark bond yield was at 8.34 percent from Tuesday's close of 8.32 percent.

Economists expect headline inflation growth to accelerate to 6.79 percent in February from a year earlier, faster than January's 6.55 percent, a Reuters poll showed on Tuesday.

Brent crude prices hovered around the 11-month high of $126.22 aided by the improving economic sentiment in the United States, the world's top oil consumer.

The RBI will leave its key repo rate unchanged at 8.50 percent, 17 of 20 analysts polled by Reuters on Monday said. In a January poll, 8 of 22 respondents had forecast a cut by the end of March.