The benchmark 10-year bond yields were up 1 basis point at 8.18 percent on the back of a strong euro with traders awaiting the US Federal Reserve Chairman's speech on Friday for cues along with the domestic growth data.
Traders have been building long bond positions on expectations of a low GDP print on Friday, but there is some profit-taking following three days of gains in bond prices, they said.
However, yields are unlikely to rise much beyond current levels.
The euro steadied near its seven-week peak on Wednesday, after getting swept higher by a wave of short-covering overnight, while the Australian dollar languished at one-month lows on persisting worries about Chinese growth.
Traders said news that European Central Bank President Mario Draghi was too busy to attend Friday's Jackson Hole meeting of central bankers renewed hopes he could announce a long-awaited plan to tackle the region's debt crisis at the ECB's Sept 6 policy meeting.
