Indian government bonds experienced a second consecutive monthly decline in December, with the benchmark 10-year yield rising. Investors were concerned by increasing supply and a cautious risk appetite, outweighing the Reserve Bank of India's rate cut and liquidity measures. While short-term rates remained low, long-term yields adjusted upward as anticipation grew for the end of the rate easing cycle. Heavy debt supply from both central and state governments in the upcoming quarter is a key factor influencing market sentiment.