Data expansion
National debt (national debt; Governmentloan, also known as national bond, is a creditor-debtor relationship formed by the state on the basis of its credit and in accordance with the general principles of debt. National debt is a bond issued by the state, a government bond issued by the central government to raise financial funds, and a debt certificate issued by the central government to investors, which promises to repay the principal and interest within a certain period of time. Because the issuer of national debt is the country, it has the highest credit and is recognized as the safest investment tool.
China's national debt refers to the national debt issued by the Ministry of Finance on behalf of the central government. Guaranteed by the national financial reputation, the credibility is very high. It has always been called "Phnom Penh bond", and cautious investors like to invest in government bonds. There are three kinds of bonds: voucher bonds, bearer bonds and book-entry bonds.
On June 15, 2020, the Ministry of Finance issued a notice, clarifying that special anti-epidemic treasury bonds will be issued in 2020. In September, FTSE Russell announced that China government bonds would be included in the FTSE World Government Bond Index (WGBI).
Central bank bills are issued by the People's Bank of China through the bond issuance system of the People's Bank of China in the interbank market. The issuer is the primary dealers of open market business, and there are 48 primary dealers of open market business, including commercial banks and securities companies. Central bank bills are discounted through competitive bidding. Of the 34 central bank bills issued, 19 was placed by non-competitive bidding, and there were 9 bilateral bidders, including China Industrial and Commercial Bank, China Agricultural Bank, China Bank and China Construction Bank. Since the issuance of central bank bills is not allocated, other investors can only invest in the secondary market.
function
1. enrich the operating tools of open market business and make up for the shortage of cash in open market operation.
After the introduction of central bank bills, the central bank can use bills or repurchase and their combinations to carry out "balance control and two-way operation" and roll central bank bills, which increases the flexibility and pertinence of open market operations and enhances the implementation effect of monetary policy.
2. Provide the benchmark interest rate for the market.
The short-term yield of national debt is generally used as the benchmark interest rate in the world. However, judging from China's situation, the vast majority of treasury bonds issued by the Ministry of Finance are more than three years old, and the stock of treasury bonds market is very small. On the premise that the Ministry of Finance can't form a rolling issuance system of short-term treasury bonds, the central bank can issue bills, which can solve the shortage of open market operating tools. At the same time, setting the term of bills can improve the market interest rate structure and form the market benchmark interest rate.
3. Promote the development of the money market.
China has few money market tools. Due to the lack of short-term money market tools, many institutional investors can only chase long-term bonds, which brings long-term interest rate risk in the bond market. The issuance of central bank bills will change the current situation that there are basically no short-term instruments in the money market, and provide an important tool for institutional investors to flexibly adjust their positions and reduce the pressure on short-term funds.