New Delhi, Oct. 3 -- India's bond market is entering October with the comfort of strong domestic growth but the discomfort of rising inflationary pressures, elevated global yields and tighter liquidity conditions.

The sharp rise in the domestic 10-year benchmark yield in September has changed the complexion of the fixed-income market, with investors now having to navigate a combination of geopolitical uncertainty, oil prices, central-bank policy and potential additional supply.

The domestic 10-year yield rose around 30 basis points in September to approximately 7.20%, following an 11-basis-point increase in August. It was 6.6% at the start of the year. The move tracked the global bond market, with the US 10-year Treasury yield rising ar...