Analysts expect the Reserve bank to cut rates in next monetary policy.
The new bond was changing hands at 7.72 per cent.
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
The United States wants India to wait for a final nuclear deal between Tehran and world powers before actively engaging with Tehran.
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.
Offshore rupee debt was likely to attract good demand
New Delhi has missed its target for partial privatisations for the past five years
Locally produced gas in India will now cost at least 8 per cent less.
India builds up record FX after Fed hints rate hike in future.
The Budget loosened the reins on public spending to drive growth.
India's banks rely on overnight borrowings to fund longer-term lending.
India's imports from Iran rose to 250,200 barrels per day
India's Iran imports rise to 276,800 bpd vs 195,600 bpd in 2013.
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.
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
The rupee has posted its biggest single-day fall in more than four months to end at 62.95 against the dollar.