New Delhi, Nov. 10 -- Rising bond yields have made fixed-income investments attractive, but investors should remain cautious as yields could move up further in the coming months amid tighter monetary policy and changing liquidity conditions, according to a report by SBI Funds Management.

The report said market yields have increased over the previous month following the initiation of monetary policy hikes and measures to reduce surplus liquidity in the banking system.

While current returns are attractive, SBI Funds believes investors should avoid making large bets on long-term bonds until there is greater clarity on interest rates and market conditions.

"While absolute yields remain attractive," the report said, adding that the uncertai...