As the two largest economies of the world, United States and Japan, as well as their treasury bonds markets play an important role in the world's financial system. However, the liquidity of treasury bonds markets of the two countries is obviously different. The liquidity of American treasury bonds market is higher than it of Japanese. The main reason may be related to the differences of issuers, markets and the nature of the bonds. It is meaningful for China to develop its treasury bond market, financial market efficiency, effectiveness of monetary policy and RMB's internationalization process by comparison of the liquidity index and analysis on the factors affecting market liquidity. China should pay more attention on the role of treasury bond market in the financial system, and take steps to improve the liquidity of Chinese treasury bond market. |