Benchmark 10-year bond yield is down 6 basis points on the day at 9.17 per cent and 31 bps off its session high of 9.48 per cent reached in early trade, the highest in over five years.
Traders say the recovery in the rupee following the RBI intervention earlier in the session is aiding bonds.
Volumes, however, continue to remain low, triggering much larger moves even with small traders.
The partially convertible is rupee at 63.66/67 per dollar compared with its close of 63.13/14 on Monday but off the record low of 64.13 reached in early trade.
