The benchmark Indian 10-year government bond yield ended at 7.4348%, compared with 7.4257% on Tuesday.
"Yields fell initially due to overnight fall in oil prices, but then there was some profit booking as market participants are awaiting retail inflation data, and the reading is seen in 7.25%-7.30% range," said Pawan Somani, head of fixed income at Knight Fintech Research.
A Reuters poll found retail inflation likely accelerated to a five-month high of 7.30% in September, well above the central bank's tolerance band for a ninth straight month.
Some 91% of economists, 43 of 47, expect inflation to be 7.00% or higher, suggesting the bias was for prices to go up further.
Meanwhile, the benchmark crude contract was up 0.4% at $94.70 per barrel, after sliding around 3.8% in the last two sessions. It had risen 11% last week.
Elevated oil prices may put even more pressure on the inflation trajectory, as India is one of the largest importers of crude oil.
The Reserve Bank of India has raised repo rate by 190 basis points in the five months to September to tamp down inflationary pressures, but the reading is expected to remain above the central bank's tolerance range in the ongoing quarter as well.
India's inflation data would be followed by keenly-watched U.S. reading on Thursday, which could provide more clarity on the Federal Reserve's interest rate trajectory.
The U.S. Fed has already raised interest rate by 300 basis points since March and is expected to opt for another 75 basis points hike in November.
Meanwhile, India's shorter term government bonds turned attractive for pricing in most risks, including aggressive policy rate hikes and tighter liquidity conditions, the chief investment officer of Nippon Life India Asset Management said.
"The one-year to five-year part of the curve has repriced significantly, taking cognizance of both monetary as well as liquidity tightening," Amit Tripathi, CIO-fixed income investments at Nippon Life, said.
(Reporting by Dharamraj Lalit Dhutia; Editing by Neha Arora)
