Treasury Bonds As A Main Tool Feasibility Study Open Market Operations In China

Open market operations is the latest and the most flexible and most frequently used monetary policy tools.in the central bank monetary policy. Government bonds as the central bank open market operations of the main mark in Developed economies of Europe and America. In 1996, China’s central bank Begin to choose open market operations which also choose the Government bonds, afterwards, when the Export-led economic model running, because of the restriction of treasury management system and the mercerization of exchange rate and interest rate incompletion, China’s central bank choose Foreign exchange as the main channel of the base currency. Central bank bills become the main tool for open market operations operation instead of Short-term debt. As the advance of China’s economic transition and The mercerization of interest rate and exchange rate, National debt once again become the main tool for open market operations. Central bank bills become open market operations of the main mark operation instead of bonds. As the advance of China’s economic transition and the mercerization of interest rate and exchange rate, National debt is expected to become China’s central bank open market operations.There is a great gap between developed and developing countries on the development of Treasury bonds. In the process of China’s economic transition, the interest rate mercerization continues to promote the "new constant condition", how can we learn from the foreign countries on the scale, structure and system of the issuing about Treasury bonds. First of all, introduces the development of open market operations in China, including our country open market operations and choosing the leading tool in open market operations. Secondly, Multiple perspectives analysis the open market operations leading tool change trend in the "new constant condition". Thirdly, we compare the Chinese and American bonds and analyze the gap between the two countries. Finally, we put forward policy recommendations for the inadequacies of the "new constant condition" of the bond issuance; provide the power in open market operation development.