The Relationship Between Supply And Demand, Liquidity For The Influence Of High Grade Credit Debt Yield To Maturity

In recent years, the domestic bond market is booming, corporate bonds, medium-term notes based credit product development at an alarming rate. Therefore, to study bond yields or bond prices influencing factors become the most important institutional investors to purchase appropriate bonds. Investors only accurately predict price movements in the case of a possible profit;at the same time, study the liquidity of the bond market is also predict an important aspect of the level of interest rates, in-depth study of mobility can advance understanding of the direction of the bond price volatility and policy fundamentals, provide favorable support for investors to make investment decisions.Currently, commercial banks are the major players in the inter-bank bond market, hel d bonds accounted for60%-65%of the total, is the absolute main inter-bank bond market.Further broken down into a national commercial bank is a major investor in the inter-bank bond market, but the volume of view, city commercial banks are more active. Commercial bank asset allocation is divided into two, loans and advances to customers and debt securities investments,which advances to customers accounted for approximately50%of the total assets of the commercial banks, bond investment accounted for about20%of the assets, bond investment proportion of total assets has increased in recent years. Bond investments for income growth,has become the main source of profit after Interest income from loans to commercial banks, however, the loan interest income in the short term will continue to be the main source of income for commercial banks, in the past many years, the rate of return on loans is generally higher than bond yields. As the main bond market, the bank bondholders behavior and changes have a profound impact on the bond market, a deep understanding of this effect is of great significance for our study to judge the direction of the bond market.In high-grade credit debt needs determined by the banking system and capital for the banking system, capital and banking financial institutions excess reserve deposits at the central bank, in the practical application of financial institutions for the banking system liquidity forecastOver the deposit reserve ratio or excess reserve the absolute size of general use to measure, the measure is widely regarded as an indicator of liquidity in the banking system. Another effect of bank bonds demand factors are changes in credit policy theory, the stage of rapid economic growth, the Bank accelerated credit expansion, increase in credit assets for the bank’s bond investment has a crowding-out effect, while the fall in economic growth, increase in the risk of loans and credit assets yield declines in the credit slowdown, bond investments increased demand for commercial banks.For domestic academic emphasis on qualitative research and theoretical characteristics in the bond market research, in this paper, the theory and empirical analysis,research the infulence of excess reserve deposits of banks, the new RMB loans and bond issuance of high-grade corporate bonds, medium-term notes yield to maturity. The results show that long-term bond yield to maturity financial side impact;the higher the credit risk of the bond yield to maturity is more vulnerable to the impact of market funds face;excess reserve and did not affect the yield to maturity; new RMB loans increased the yield to maturity fell;the amount of credit debt issue of rising yield to maturity upward pressure; interest rate debt issuance from the rise in the yield to maturity fell.The empirical study is an innovation of the bond market liquidity, the investment practices of some significance, by tracking monthly new RMB loans, bond issuance, as well as foreign exchange, open market operations, fiscal deposits, statutory deposit reserveratio and cash macro data, investors can determine the changes in direction and approximate trend in high-grade credit bonds yield to maturity, provide a basis for decision making to improve the combination of yield to maturity. Practitioners extensive use of excess reserve as the background of the key factors influencing the demand for bonds on relevant theoretical research and empirical analysis of a range of different yield to maturity of the credit rating, the yield to maturity of the excess deposit is not conclusions that affect the yield to maturity, can be said to subvert some of the views of the practitioners. But because too few of the data as well as data volatility, the results of the study have a certain impact, but as exploratory, pioneering research, this study is still great value in the future can look for other bonds reflect supply and demand high frequency data to the yield to maturity empirical analysis, more accurate draw the relevant conclusions.