Indian government bonds ended lower on Thursday as the market entered a period of transition. Traders balanced positions ahead of the final major debt auctions for the fiscal year and the transition to a new GDP data series. The benchmark 10-year bond yield edged up to close at 6.689%, a slight increase from the previous session’s 6.682%. Selling pressure emerged as the market prepares for the penultimate weekly debt sale of the 2025-26 financial year. The Reserve Bank of India is scheduled to auction 6.48% GS 2035 bonds worth 32,000 crore on Friday. This issuance forms part of the government's broader strategy to manage its borrowing requirements before the fiscal year concludes in March. Liquidity management remains a primary focus for participants. The central bank recently conducted a 25,000 crore bond switch auction to replace near-maturity papers with longer-dated securities. This move is designed to ease redemption pressures for the upcoming 2026-27 fiscal year, where bond maturities are expected to reach approximately 5.47 lakh crore. Market sentiment is currently cautious due to the upcoming release of the first GDP growth data under a revised series. This new series features a base year of 2022-23 and is expected to provide a more granular view of the domestic economy. Early projections for the third quarter of the current fiscal year suggest a real growth rate of approximately 7.2%, reflecting a slight moderation from previous prints. Inflation dynamics continue to support a stable interest rate environment. The most recent Consumer Price Index data showed headline inflation at 2.75% for January 2026. This has allowed the Monetary Policy Committee to maintain a neutral stance and keep the repo rate at 5.25%. Core inflation remains benign at 3.4% under the new series, providing a buffer against global market volatility. Global factors are contributing to the choppy trading session. While the United States 10-year Treasury yield softened to 4.04%, domestic traders remain sensitive to fluctuating crude oil prices and geopolitical shifts. The Indian rupee held steady at 90.92 against the dollar, providing some stability to the broader fixed-income landscape. The market outlook remains tied to the results of the upcoming Friday auction and the subsequent GDP data release. These events will define the yield trajectory for March as the government fulfills its remaining market borrowing target for the year. Yields on ultra-long securities, specifically the 30-year and 40-year papers, continue to face upward pressure compared to the 10-year benchmark.