How To Fix J6080 - Yield cat. zero bond yield and interpolation basis par rate not supported

SAP Error Message - Details

• Message type: E = Error

• Message class: J6 - IS-B: Yield curves

• Message number: 080

• Message text: Yield cat. zero bond yield and interpolation basis par rate not supported

What causes this issue?

You have selected the yield category "zero bond yield" and the
interpolation basis "par rate". This combination is not supported.

System Response

The interpolation basis is changed to "zero coupon".

How to fix this error?

If you want to use the interpolation basis "par rate", choose the yield
category "par rate".

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message J6080 - Yield cat. zero bond yield and interpolation basis par rate not supported ?

  The SAP error message J6080, which states "Yield cat. zero bond yield and interpolation basis par rate not supported," typically occurs in the context of financial transactions involving bonds and yield calculations in SAP's Treasury and Risk Management module. This error indicates that there is an issue with the yield curve or the parameters being used for bond yield calculations.
  Cause:
  
  Zero Bond Yield: The error suggests that the system is trying to calculate a yield for a bond that has a zero yield category. This can happen if the bond is not yielding any return or if the yield data is not properly configured.
  Interpolation Basis: The error also indicates that the interpolation basis for the par rate is not supported. This could be due to incorrect settings in the yield curve configuration or the absence of necessary data points for interpolation.
  Configuration Issues: There may be issues with the configuration of the yield curves in the system, such as missing data or incorrect parameters.
  
  Solution:
  
  Check Yield Curve Configuration: Review the configuration of the yield curves in SAP. Ensure that the yield categories and interpolation methods are correctly set up. You may need to consult with your SAP Basis or Treasury team to verify the settings.
  Data Validation: Ensure that the bond data being processed has valid yield information. If the bond is indeed a zero-yield bond, check if it should be processed differently or if there are alternative yield data points available.
  Update Parameters: If the interpolation basis is not supported, consider updating the parameters or methods used for yield calculations. This may involve changing the interpolation method or ensuring that the necessary data points are available for the calculation.
  Consult Documentation: Refer to SAP documentation or support notes related to Treasury and Risk Management for specific guidance on yield calculations and error handling.
  Testing: After making changes, conduct tests to ensure that the error is resolved and that yield calculations are functioning as expected.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have found.
  Training and Documentation: Ensure that users involved in bond yield calculations are trained on the correct procedures and understand the implications of zero yield bonds and interpolation methods.
  
  If the issue persists after following these steps, it may be necessary to escalate the problem to SAP support for further assistance.