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Negative yield quoted for first time on Indian bond thanks to error

A bank placed a wrong price quote, which led to a negative yield as the paper was nearing maturity

10-year bonds, benchmark, market, rbi
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If the rate dips into negative territory, it would become costlier for traders to borrow bonds — effectively imposing a penalty on short-sellers

Subhadip Sircar | Bloomberg
A negative yield was quoted for the first time on India’s sovereign bond trading platform on Friday after a bank placed a wrong price, according to people with knowledge of the matter.
 
The 6.17 per cent note maturing in 2021 was offered at a negative yield of around 1.5 per cent, according to traders who saw the quote on the Clearing Corporation of India’s Negotiated Dealing System — Order Matching, or NDS-OM platform. They asked not to be identified as they aren’t authorised to speak to the media.
 
A bank placed a wrong price quote, which led to

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First Published: Mar 23 2021 | 12:58 AM IST

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