Indian government bonds have seen a decline for the third consecutive session, with the benchmark 6.48% 2035 bond yield rising to 6.9761% as of 10:15 a.m. IST. This drop is attributed to climbing oil prices amid unresolved tensions in the U.S.-Iran conflict, which have raised fears of further escalation in the Middle East. Brent crude oil prices have surged nearly 50% since the onset of the U.S.-Iran war on February 28, significantly impacting India, which relies on imports for about 90% of its crude oil needs. The Indian government plans to raise ₹320 billion (approximately $3.40 billion) through a bond sale later today, including the issuance of liquid 30-year bonds. As traders brace for this fresh supply, there is little optimism in the market, especially given the current oil price environment, which is detrimental to Indian debt. Additionally, India's overnight index swap rates have risen as traders adjust their positions in response to the elevated oil prices.