The Effectiveness Analysis Of Treasury Market In China

With the deepening of the market-based reform of interest rates, with the continuous development of national debt market in China, scholars study of Treasury bond market, the bond yield curve also constantly progress. The development of our country for various reasons, the Treasury bond market is relatively backward, not only is backward compared with some developed countries, compared with other financial instruments in our country, the development of Treasury bond market is relatively lagging behind.The Treasury bond market in a country’s financial market and even in the economic operation of the whole society has played a very important role: the Treasury bond market for macroeconomic policy provides an important platform, monetary policy(mainly refers to the open market operations), fiscal policy is generally in the Treasury market as a platform for macro economic control; The Treasury bond market generated the whole financial market benchmark, is generally regarded as risk-free yield; The Treasury bond market to provide liquidity support to other financial markets, provide investors with interest rate risk management mechanism.The Treasury bond market in a country’s financial market and even in the economic operation of the whole society has played a very important role, therefore, more and more scholars study looking at the Treasury, the Treasury bond market has caused the attention of the highest level of our country.In the research of financial instruments, we always focus on the risks and benefits. And national debt risk of the financial instruments, the relationship between the income is concentrated in the bond yield curve, yield curve can help investors in the primary market calculate the bid rate bonds, is whether to invest, how to invest in one of the important basis, and provide basis for predicting the secondary market price. At the same time, the government issued Treasury bonds, strengthening the management of the Treasury, the implementation of monetary policy, fiscal policy also needs to refer to changes in the bond yield curve, thus, the bond yield curve is an important research tool on the Treasury market. Although the Treasury yield curve in China, and its itself is complete and accurate, but this does not mean that China’s current national debt market, is the effective market. Therefore, this article is necessary, the Treasury bond market in China is whether effective depth.This paper includes five parts: the first part is introduction, including the paper selected topic background, the selected topic significance, the related literature review, this paper frame structure, this article’s innovation and inadequate. The second part is the Treasury bond market effectiveness of relevant theoretical knowledge, this chapter analyzes the important position and role of the Treasury bond market, summarizes the basic function of national debt, analyses the factors that affect bond prices, given the meaning of the effectiveness of the market. The third part discusses the judgment standard, the effectiveness of the national debt market in China and the Treasury bond market in China according to these standards to the effectiveness of the corresponding aspects has carried on the qualitative and empirical test. The fourth part is the analysis of the causes, the paper analyzes the current main cause of the strong bond market in our country not effective, this part is qualitative analysis. Policy Suggestions on part of the last part of this article, according to the analysis and study of the above four parts, this paper puts forward policy Suggestions on the following aspects, including: rich trading main body types, rich national debt trading varieties, perfect the distribution mechanism, establish a unified Treasury bonds in the secondary market, improve the liquidity of the secondary market, strengthen the development of the national debt derivatives, etc.