Indian government bonds fell for a third straight session on Friday, with the benchmark yield reversing nearly half of last week's decline as above-target inflation in India and stronger-than-expected US inflation clouded the interest-rate outlook. The benchmark 6.94% 2036 bond yield ended at 7.3079%, up from 7.2467% on Thursday. The yield rose 12 basis points this week after plunging 22 bps last week. Indian bonds have surrendered over half of last week's exceptional gains as investors reassess the interest-rate outlook, said Umesh Tulsyan, managing director at Sovereign Global Markets.