Indian government bonds fell for a third straight session on Friday as oil prices climbed amid no resolution to the U.S.-Iran conflict, while traders braced for fresh supply from the weekly auction. India's benchmark 6.48% 2035 bond yield stood at 6.9761% at 10:15 a.m. IST after closing at 6.9498% on Thursday. New Delhi will raise 320 billion rupees ($3.40 billion) through a bond sale later in the day, including the liquid 30-year paper. "Higher oil prices are clearly negative for Indian debt, and with supply ahead, the market has little reason to turn optimistic for now," said a trader at a private bank.