New Delhi, Sept. 11 -- Indian government bonds came under pressure this week, with the benchmark 10-year yield moving above 7% as higher crude oil prices, a global debt-market selloff and concerns over the Reserve Bank of India's liquidity stance weighed on sentiment.

However, analysts believe domestic economic conditions remain the key factor determining the direction of Indian bond yields, rather than movements in global yields alone.

India's bond market is increasingly being driven by the country's growth and inflation outlook, fiscal deficit trajectory and other domestic economic factors, according to Manish Banthia, chief investment officer for fixed income at ICICI Prudential AMC, as reported by Mint.

Banthia said elevated global...