Oil slide sends India's benchmark yield to two-month low

Indian benchmark 10-year bond yield fell 2.5 bps to 6.8704%, its lowest since April 15, driven by a 5%+ drop in Brent crude to $82.80/barrel following a preliminary U.S.-Iran peace deal reopening the Strait of Hormuz. FIIs poured nearly $1.6 billion into Indian bonds over the past six sessions, and the rupee's YTD decline narrowed to 5.6%. Analysts at Edelweiss MF expect yields to ease further toward 6.75-6.80%, though May wholesale price inflation rose to 9.68% YoY.