New Delhi, May 22 -- Bond yields in India have risen sharply this year, with government securities (g-secs) climbing around 50 basis points amid a mix of concerns - elevated crude oil prices fuelling inflation fears, a potentially wider fiscal deficit due to a costlier import bill, and growing speculation that the US Federal Reserve may raise interest rates.

The shift has unsettled debt markets globally. But against this backdrop, Vikas Garg, head of fixed income at Invesco Mutual Fund, believes longer-duration funds may now offer a tactical opportunity, particularly if the West Asia war shows stronger signs of de-escalation. He also explains how investors can position debt portfolios in the current environment.

Edited excerpts:

Much o...