Capital controls by the government raised market concern on liquidity which deterred market sentiment.
Prices of government papers fell across maturities mostly in the range of 20-86 paise.
The yield on the 10-year benchmark paper closed at 7.90 per cent as against a closing of 7.82 per cent on Tuesday.
Call rates closed around 6.10 per cent with the RBI accepting round Rs 37,000 crore from the market.
The cut-off yield on the 91-day and 264-day t- bills worked out to 6.56 per cent and 7.27 per cent against market expectation of 6.50 per cent and 7.05 per cent respectively.
