Dealers say weakness in the rupee at 59.39/59.40 at 1022 GMT, as against 59.385/395 Friday close, puts pressure on bonds.
Expectations the 7.16 per cent 2023 bond may be up for auction next week also add selling pressure, dealers said.
Dealers say the gas price hike raised expectations that the government would also announce other potentially unpopular moves, such as opening up more sectors to foreign investment to attract foreign capital.
So far, there has been no respite from heavy selling by foreigners in rupee-debt with $5.68 billion of sales in June.
