The Issuance Of Treasury Bonds Interest Rate Management Studies

These days, it is an important issue to merge into the global economy a nation. One of the most significant adjustment areas is the financial market, while we are undergoing the economic system transformation ~om a planning economy to a market-oriented model. The liberalization capital markets is well known, because marketalization of interest is a ~gnificant segment in course of the opening of capital market. As one of financial interest rates, marketlization of treasury security interest rates is 憈he catalyst for marketlization of financial interest. However, there is little consensus as to how marketlization of treasury security should be done. Therefore, we should study the Management (Management stands for the management of treasury security interest rates). Based on the fundamental framework of the Marxism, with respect to the interest rate determinant theory and term structure theory, this essay makes a comprehensive analysis of Management. The essay consists of three chapters. Chapter One defines and classifies Management. Also the interest rate determinant theory and term structure theory are introduced in this section. To Management of treasury security interest rates by definition, it is to adjust the issuing factors related to the determinant of the treasury security interest and use the managing technical method to adjust the macroeconomic effect caused by the - treasury security interest rate. Management is concerned with four principal matters as follows: (1) Basic determinants of the treasury security interest rate; (2) The behavior of issuing method; (3) Rationalization of the term structure of treasury security; (4) Rationalization of the investors of treasury security. Refer to the determinant of interest rates, some theories gives their explanations. The classical theory argues that interest rates in the financial market were determined by the interplay of the supply of saving and the demand for investment. The liquidity preference theory assumes that the interplay of total demand for and the supply of money determine the equilibrium rate of interest in the short run. The IS-LM theory is the typical interest determinant theory. It is argued that more factors related to interest rate should be considered in determining the interest rate, for example, national income, supply of money, investment, savings and so on. All above-mentioned theories make a superficial analysis. Marxist theory gave the intrinsic study on the determinant. So our study should be based on the fundamental framework of the Marxism. The term structure of interest rates portrays the yield-maturity relationship on securities that differ only in length of time to maturity. A number, of theories attempt to explain the term structure. The pure expectations theory states that expectations of the future course of interest rates are the sole determinant. It implies that securities of different maturity are perfect substitutes in the sense that the expected return is the same. Term premiums theory suggests that market participants prefer to lend short unless offered a premium sufficient to offset the risk of lending long. Thus, the term structure would be affected not only expectations by term premiums. A market segmentation theory implies that there are a number of different markets, and interest rates are determined by the...