Reuters Market Eye - The government bonds extend gains in line with the fall in the spot USD/INR.
USD/INR at 62.44/45 after rising to 62.5350, versus the previous close of 62.50/51.
Traders also sitting light, some punting on the central bank easing liquidity post end-November when the concessional swap facility for non-resident Indians closes.
The new 10-year bond yield down 2 basis points at 8.73 percent.
The existing 10-year benchmark bond yield down 5 bps at 9.04 percent.
The choice of auction papers for Friday sale throws up some surprise with the RBI choosing the 8.24 percent 2027 bond instead of the 8.28 percent 2027 paper.
(Reporting by Subhadip Sircar)