Treasury Yield Curve In Interest Rate Market In China To Study

Price is the soul of market economy. In China, the innovation in the prices of merchandise had been finished in the 1980s, but in terms of the capital price, interest rate, it is still being in ascendant. The transformation in interest rate aims at realizing the marketization of interest rate. As a more effective method to distribute resources, it is one of the basic contents of financial system transformation in China. It is also a process in which government or currency authorities will gradually loosen or quit their direct control or restriction on interest rate, and therefore make capital demand to decide the level of interest rate.Under the marketization of interest rate, the main body of finance dealing must share a common knowledge on interest rate system, which contain complicated amount, terms and risk system. That is benchmark interest rate. Benchmark interest rate is a basic interest rate indispensable to the mechanism of interest rate marketization. To some extent, it is the core of the system. So it is intrinsic for the marketization of interest rate to choose an appropriate and effective market interest rate as benchmark interest rate by the currency authorities. Now it is time to break through the marketization of interest rate. It is a very important step to choose an appropriate benchmark market interest rate and benchmark yield curve for China to realize comprehensive the marketization of interest rate.The theory and practice of national debt has been made a great progress since our country reissued national debt in 1981: the scale is enlarged year by year, the issuing ways and technique is going to perfect, the varieties and term structure is becoming more and more abundant, dealing means and institute has been continuously improved, a complete running system of national debt is being set up elementarily. With our entering into WTO and the opening and joint with international economy, national debt, as a good joint between financial policies and monetary policy, has done more in financial field than in money field. The advantages of national debt has revealed in the process of marketization of interest rate: the highest credit and the lest venture, a high market participation and broad influence, a high stability and controllability of interest rate, a great conjunction with other market interests rate. The interest rate of national debt is inevitable choose as effective benchmark interest rate. But presently, the national debt interest rate cannot undertake the great responsibility as market...