The Construction Of Secondary Treasury Market And The Formation Of Treasury Yield Curve

The issuing of Chinese term bond yield curve,in the official website of The Ministry of Finance,reflects state attention about Treasury yields.The government will reference the interest rate curve in the secondary market when issuing bonds in the primary market.The yield curve derived from the secondary treasury market,and the yield curve and secondary market trading price formation mainly depends on the interest rate of bond among varieties.The marketization of interest rates need to establish a benchmar,treasury benchmark interest rate is a optimum choice,for low risk,better market liquidity and conductive,to be the perfect reflection of market supply and demand as well as for promoting the marketization of interest rates.Under this background,analyze and research the Treasury bonds secondary market and the bond yield curve,found the problems and put forward the feasible improvement measures,has practical significance.Firstly,this paper analysis relevant theories,clarifies the relationship between the Treasury yield curve and bond secondary market,marketization of interest rate,benchmark function and influence factors of the bond yield curve.Then,on the analysis of the Chinese bond secondary market and progress of yield curve,derive of the present problems and causes.And,after investigating typical higher degree marketization countries,this paper puts forward policy recommendations about the secondary market and yield curve of China.Empirical analysis shows the yield curve with the benchmark interest rate characteristics,Hermite model could be optimal alternative balancing current application and future development.More marketization in the bond secondary market,more suitable shape of yield curve,and plays more function as benchmark interest rate.Therefore,the improving of compling yield curve and applicate it should be based on promoting marketization in the bond secondary market.It is rare,in domestic research,to analysis the yield curve under the framework of the bond secondary market.The bond is the cross-over point of fiscal policy and monetary policy,under specific policy aims and economic basis,and has a guiding effect on the micro economic development,which has a significant role to realize the macro economic goal.The yield curve is a benchmark of bond market,it not only concerns the national bond pricing,but is also increasing important in economic policy,macro-control and other aspects.The Chinese government should strengthen the construction of yield curve and secondary bond market,the reform of finance and the development of financial market will benefits from the promising interaction between them.