Fat Finger Triggers First Negative-Yield Quote on an Indian Bond

A bank had placed a wrong price quote with the bond maturing
Traders say the note was offered at negative yield of -1.5%

A wholesale market in Patna, Bihar, India, on Friday, Feb. 26, 2021. After falling into a coronavirus-fueled recession in the third quarter, India's economy has likely returned to expansion in the three months ended December, according to the median estimate in a Bloomberg survey of economists.Photographer: Anindito Mukherjee/Bloomberg

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By Subhadip Sircar

March 20, 2021 at 6:01 AM UTC

Updated on

March 22, 2021 at 4:39 AM UTC

This article is for subscribers only.

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% note 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.