New Delhi, May 27 -- Amid heightened market volatility, falling gold prices since the onset of the US-Iran conflict, and a hit to investors' risk appetite, Investors appear to be grappling with a key question: Is it the right time to increase exposure to government bonds?

The US-Iran war has increased macroeconomic risks, with rising oil prices fuelling concerns over a spike in inflation and the possibility of tighter monetary policy globally. This has created an environment of elevated uncertainty. There is also growing speculation that even after the Middle East conflict is resolved, the impact of the energy shock may persist for some time.

The prevailing environment appears suitable for bond investors. However, before buying them, on...