Empirical Study Of China's Treasury Yield Curve

The study of the yield of treasury bond as well as the shape and volatility of the yield bears an important meaning not only for the embodiment of the requirement but also for accelerating the reform of interest rate marketization and optimizing the structure of the financial market and promoting the benign growing of the economy.This paper focuses on the treasury bond yield curve of China, discussing about the volatility characters and the future trends of the treasury bond yield curve. At first, this Paper introduces the general knowledge of interest rate term structure and it's applying to the following aspects: the interest rate, exchange rate, bonds pricing and financial policy and monetary policy. According to the volatility characters of the treasury bond yield curve, the paper analyzes the causes from the perspective of both theoretical and experimental, then forecasts the future changes of the treasury bond yield curve. At last, the author makes policy suggestions about how to perfect China bond market from the point of view of the term structure of interest rate.