Analysts expect the Reserve bank to cut rates in next monetary policy.
The new bond was changing hands at 7.72 per cent.
Traders believe the RBI will step in more strongly, if the rupee starts falling towards 65
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
S&P warned about spending on subsidies and heavy government debt.
Sahoo panel suggests India must ease global borrwoging norms for corporate houses.
The RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18.
RBI governor Raghuram Rajan says a cut in cash reserve ration will not at all impact lending rates.
Offshore rupee debt was likely to attract good demand
India builds up record FX after Fed hints rate hike in future.
Reserve Bank of India (RBI) Governor Raghuram Rajan's decision to cut rates last week surprised even top officials.
Will RBI chief have the final say, in the form of a veto
The Budget loosened the reins on public spending to drive growth.
India needed more specialists within government
India's banks rely on overnight borrowings to fund longer-term lending.
India allows foreign investors to buy upto $81 bn
Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February.
Earlier, India said the headline annual consumer price inflation accelerated to 5 per cent, compared with a 4.4 per cent print in November.
The rupee had weakened by 23 paise to end at 63.51 against the American currency on Wednesday on month-end dollar demand from oil companies and persisting selling by foreign funds in stocks.