Debt-fund managers have significantly reduced their exposure to corporate bonds over the last one year, according to data from SEBI and mutual funds. Fund managers tell us that they are concerned about the rise in bond yields. Rising inflationary pressure, and uncertainty around the interest-rate scenario and the monetary policy have made debt-fund managers wary about taking exposure to the longer segment. The US has already indicated that easy money will dry up soon. Fund managers say they prefer the three-to-five year segment of the government bonds, which have already priced in much of the liquidity normalisation.