Glamor Economics

Chapter 97

Chapter 13, Section 7 Bonds issued as a guarantee of national credit——Treasury bonds

In 2009, the Ministry of Finance announced that it decided to issue the 12 book-entry discount (21 issues) treasury bonds on December 2009 of that year, with a face value of 26 billion yuan and a period of 150 days. The annual yield is 182%.The current national debt will be the last national debt in 99.355.

根据财政部公告，本期国债通过全国银行间债券市场和证券交易所面向社会各类投资者发行。2009年12月21日开始发行并计息，12月23日发行结束。12月25日起在各交易场所上市交易，交易方式为现券买卖和回购。

据不完全统计，2009年国债发行规模为2008年的两倍左右，即在1.4万亿和1.6万亿元之间。2008年，实际发行国债为8558亿元。

2009年发行的记账式国债共25只，其中1年期和3年期国债各4期；5年期国债5期；7年期和10年期国债各6期。从期限来看，中长期国债数量明显高于短期国债数量；发行时间相对集中，主要在二三季度，其中5～7月是一个高潮，每月均有3期发行。

As we all know, national debt was originally a means for the government to raise financial funds to make up for fiscal deficits.In fact, national debt is not just a simple means of raising funds for the government, it is also an important tool for a country to regulate its economy.There are three purposes for the government to issue treasury bonds: to make up for the lack of financial funds; to directly regulate the economy; and to have both.

There are two main ways for the government to issue treasury bonds, one is to issue to the central bank, and the other is to issue to the public.Although they are all means of raising funds for the state's finances, their economic effects will be different due to the different issuance methods.If it is to issue treasury bonds to the central bank, the bank will directly increase the supply of money, and the government will eventually increase the amount of money in the entire market through the use of newly increased money.Therefore, the government has a money creation effect by issuing treasury bonds to the central bank.Under conditions of full employment, inflation will occur.The second method is different. Since the public is the target of the issuance of government bonds, while the fiscal funds increase, the amount of money in the hands of enterprises or the public will decrease, that is, wealth will be transferred from the hands of residents to the hands of the government.It just produces a transfer effect of wealth, and does not directly increase the amount of money in the market.Therefore, in terms of the degree of impact on the economy, the second method tends to be more neutral.

The role of national debt can obviously be answered from the purpose of the government's issuance of national debt.Specifically, it can be viewed from the perspective of monetary policy and fiscal policy. First of all, it can be regarded as monetary policy, which is mainly used to adjust the balance of supply and demand in the currency market.When the supply of money in the money market exceeds demand, sell treasury bonds or newly issued treasury bonds, and vice versa, buy treasury bonds, so as to achieve the equilibrium of the money market.Secondly, from the perspective of fiscal policy, the issuance of treasury bonds transfers the right to use funds from the micro-subjects of the market to the government, and the government can effectively use this part of the funds. For example, some key national projects are distorted due to structural imbalances in the economy. Some industries, emergencies, social public utilities, etc., so as to reduce the blindness of market behavior.It is not difficult to see that the former is for the purpose of the government directly regulating the economy, while the latter is for making up for the shortage of financial funds.

[links to related words]

National bonds National bonds are the legal relationship of national bonds formed through the issuance of bonds.National bonds are the main form of national domestic bonds. The national bonds issued by my country mainly include treasury bonds, national economic construction bonds, and national key construction bonds.

National borrowing According to certain procedures and forms, the borrower and the lender negotiate together and sign an agreement or contract to form a legal relationship of national debt.National borrowing is the main form of national foreign debt, including foreign government loans, loans from international financial organizations and loans from international commercial organizations.

Voucher-style treasury bond A kind of national savings bond, which can be registered and reported for loss, and the creditor's rights are recorded with the "voucher-style treasury bond collection certificate". It cannot be listed and circulated, and interest will be calculated from the date of purchase.During the holding period, if the holder needs to withdraw cash under special circumstances, he can redeem it in advance at the purchase outlet.When withdrawing in advance, in addition to repaying the principal, the interest is calculated based on the actual number of days of holding and the corresponding interest rate level, and the handling agency charges a handling fee of 2‰ of the principal.

Bearer (material) treasury bond A kind of bond in kind, which records claims in the form of physical bonds, with different face values, bearer, no loss report, and can be listed and circulated.During the issuance period, investors can purchase directly at the counters of government bond sales agencies.Investors who set up an account in the stock exchange can entrust a securities company to apply for purchase through the trading system.After the issuance period ends, holders of physical bonds can sell them over the counter, or hand over the physical bonds to the stock exchange for custody, and then sell them through the trading system.

Book-entry treasury bonds record creditor's rights in the form of book-entry, issue and trade through the trading system of the stock exchange, and can be registered and reported for loss.Investors who conduct book-entry securities trading must open an account in the stock exchange.Since the issuance and transaction of book-entry treasury bonds are paperless, the efficiency is high, the cost is low, and the transaction is safe.

(End of this chapter)