Indian government bonds were a tad lower in choppy early trading on Tuesday, as a fresh escalation in U.S.-Iran tensions reversed oil's direction and softer Treasury yields supported bulls. The benchmark 6.48% 2035 bond yield was at 7.0343%, as of 10:00 a.m. IST, after ending at 7.0270% on Monday. Bond prices move inversely to yields. "We could be in a narrow range of 7.01%-7.05% today and tomorrow, if oil prices remain around the current levels, and demand for the weekly auction could sway the market on Friday," a trader with a primary dealership said. New Delhi to raise 280 billion rupees ($2.93 billion) through the sale of bonds on Friday, including the 6.68% 2040 bond, which led the selling in Tuesday's trading. Oil prices moved higher with the benchmark Brent crude around $98 per barrel in Asian hours after the U.S. military carried out strikes in southern Iran in what it described as defensive actions. This has again raised concerns among market participants about the prospect of a sustainable peace deal between the two warring nations.