New Delhi, April 14 -- India's fixed income market is expected to remain cautious in the near term, according to a report by Union Bank of India. Bond yields are likely to stay high due to global inflation risks and uncertainty around domestic policies.

The report says market sentiment is cautious, and any short-term gains are likely to be driven by technical factors rather than real improvement in fundamentals.

"Overall, the market bias remains cautious, with yields likely to stay elevated amid inflation risks and policy uncertainty," the report said.

Globally, markets are under pressure due to rising geopolitical tensions, especially in the Middle East. This has pushed crude oil prices above $100 per barrel, increasing inflation conc...