First negative-yield quote causes flutter in India's sovereign bond market

While there's a total $13.30 trillion of negative-yielding assets in the world, the phenomenon had been unheard of in an emerging market like India where the benchmark 10-year note trades at above 6%

A negative yield was quoted for the first time ever on India’s sovereign bond trading platform Friday, traders said, triggering intense speculation about the motive.

The 6.17% bond maturing in 2021 was offered at a negative yield of around 1.5%, 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 authorized to speak to the media.

While there’s a total $13.30 trillion of negative-yielding assets in the world, the phenomenon had been unheard of in an emerging market like India where