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Analysis Of The Characteristics Of Special Treasury Bonds

2011/1/10 16:25:00 68

The Standing Committee of the National People's Congress voted to approve the issue of 1 trillion and 550 billion yuan special.

National debt

Buying foreign exchange.

The Treasury will issue 1 trillion and 550 billion yuan special treasury bonds to buy about 200 billion dollars.

foreign exchange

As the capital of the forthcoming foreign exchange investment company.

The special treasury bonds issued are treasury bonds that can be circulated for more than 10 years, and the coupon interest rate is determined flexibly according to market conditions.

Then, what are special treasury bonds? What are the characteristics of special treasury bonds, such as "10 years or more" and "negotiable bookkeeping"?

According to the background information, this is the 270 billion dollar national debt injection issued by the government in 1998.

Bank

After that, we solved the major financial problems again through special treasury bonds.

In August 18th of that year, the Treasury issued special treasury bonds of 270 billion yuan for a period of 30 years, which was used to replenish the capital of wholly state-owned commercial banks, so as to raise the capital adequacy ratio of the wholly state-owned commercial banks and enhance their competitiveness in the international financial market.

One characteristic of this special treasury bond is that the repayment period is more than 10 years, which belongs to the category of long term treasury bonds in China.

According to the repayment period, treasury bonds can be divided into four types: short-term treasury bonds, medium term treasury bonds, long-term treasury bonds and permanent bonds.

Among them, the term of short-term treasury bonds is generally less than one year, mainly in order to adjust the temporary surplus and deficiency of the turnover of treasury funds, and has greater liquidity.

The repayment period of the medium-term government bonds is 1 to 10 years (including one year but not 10 years). Because of the long repayment time, the use of debt funds by the state is relatively stable.

The term of long-term treasury bonds is more than 10 years (including 10 years), which allows the government to dominate financial resources for a longer period, but holders' earnings will be affected by currency and commodity prices.

The term "permanent government bonds" refers to the bonds which do not stipulate the repayment period, but the Treasury bonds that stipulate the payment of interest on time can be written off from the market at any time when the government's financial resources are permitted.

Another feature of the Treasury's issuance of special treasury bonds is: Negotiable treasury bonds, and coupon interest rates are flexibly determined according to market conditions.

Bookkeeping treasury bonds, also known as paperless treasury bonds, do not provide any physical objects or paper receipts to purchasers when they buy treasury bonds.

This record of creditors' names, amounts and other matters, the Treasury bonds issued in the book form are treasury bonds. Under the modern financial conditions, they rely on electronic accounts. Because they do not need to be printed, pported and kept in securities, the issuing cost is low and the efficiency is relatively high.

According to the circulation, treasury bonds can be classified into negotiable bonds and non negotiable bonds.

After the issuance period, the Treasury bonds that can be freely traded in the public bond market are negotiable bonds, and the paction prices will fluctuate with the influence of market supply and demand, interest rates, prices and other economic and non economic factors, and are important trading objects in the financial market.

When issuing, it is not allowed to enter the market circulation. The Treasury bonds that can only be paid at the prescribed time are non tradable bonds, which are mainly issued on the basis of meeting the investment needs and related purposes of the particular buyers group.