Indian government bonds fell for a third consecutive day on Thursday, extending a selloff that has eroded momentum from a four-week rally.
The decline followed the Federal Reserve's decision to hold interest rates steady, a move that clouded the outlook for U.S. interest rates and prompted investors to pivot toward domestic drivers.
With external cues muted, attention is now squarely on an upcoming large debt auction scheduled for Friday, which will test demand in a market already showing signs of fatigue.
The bond market's retreat marks a shift in sentiment after yields had been trading in a narrow range for two sessions.
The Federal Reserve's policy outcome, which maintained the federal funds rate, triggered a broader reassessment of rate paths across emerging markets.
In the U.S., equity markets closed lower on Wednesday as investors digested the central bank's communication, adding to the pressure on risk assets globally.