Can Treasury bills circulate freely when they are first issued?

Treasury securities refer to a kind of debt repayment and forgiveness issued by the national financial authorities to make up for the imbalance of the treasury balance between revenue and expenditure.

Treasury bills were made in 1877 by British economists.

and invented by writer Walter Bazot and first released in the UK. Because the debtor of treasury bills is the state, and its repayment guarantee is the state's fiscal revenue, it has almost no credit default risk and is a credit instrument with the least risk in the financial market.

The shortest maturity of China's treasury bills is one year, while there are many varieties of treasury bills in Western countries, which can generally be divided into four types: 3 months, 6 months, 9 months, and 1 year, and their denominations vary from country to country.

The official website announces Youliang.

On January 16, 1981, the People's Republic of China Treasury Bills Regulations were passed, and it was determined that the issuance of treasury bills of the People's Republic of China would begin in 1981. The Regulations stipulate that treasury bills may not be circulated as currency and may not be freely bought and sold. The repayment period is 5 years.

On February 16, 1982, the Treasury Bills Marketing Committee was established.

From 1981 to 1987, the average annual issuance scale of China's treasury bills was 5.95 billion yuan, and there was no primary market (issuance market) and secondary market (circulation market) for treasury bonds. Except for the three-year key construction bonds with a maturity of 5.4 billion yuan issued in 1987, the other years are medium- and long-term treasury bonds of 5 to 9 years.

In 1988, the state made important improvements to the method of issuing treasury bills, while raising interest rates and shortening the repayment period (5 years to 3 years), it approved the first pilot work of opening up the treasury bill transfer market in seven pilot cities for financial reform, including Shenyang, Shanghai, Chongqing, Wuhan, Guangzhou, Shenzhen, and Harbin, from April 1988, allowing the transfer of treasury bills, but not as currency. Access to the transfer market is limited to Treasury bills issued by individuals on an annual basis. In June 1988, the second batch of 54 cities began to carry out the pilot project of treasury bill transfer.

In 1991, the Ministry of Finance and the People's Bank of China decided to expand the types of market-traded coupons, and starting in March, more cities nationwide opened up the circulation and transfer market of treasury bonds. So far, the treasury bill market has moved towards full opening.

Treasury bills, as state bonds, are subject to one-time repayment of principal and interest, without payment of overdue interest, and there is no deadline for redemption. Therefore, individuals who have not gone through the redemption procedures after the maturity of treasury bills can go to the "perennial redemption point of treasury bonds" designated by the local finance department to handle the redemption. Normally, the "perennial redemption points for treasury bonds" are set up in the outlets of state-owned commercial banks (industry, agriculture, China, construction, and communications), and there is no deadline for payment all year round.

1.Balancing fiscal revenue and expenditure: Raising taxes, issuing additional currency, and issuing treasury bonds are common ways to balance fiscal revenue and expenditure;

2. Raising construction assets: The amount of funds required for the construction of large-scale infrastructure equipment and public facilities in the country is usually very large, and the project implementation cycle is long, so the state can raise assets for the project through the issuance of medium and long-term national bonds to alleviate the pressure on the Finance Bureau;

3.Maturity of treasury bonds: When the issuance of treasury bonds matures, if the first capital is tight, new bonds can be issued, and the new bond assets raised can be used to repay the old rot and bond principal and interest that have matured;

4.Financing funds: This is also a rare purpose of issuance, usually when a country is at war, also known as war bonds.

The above is the purpose of Treasury bill issuance.

The way in which treasury bonds are issued.

1. Fixed profit sales method: The penitential faction issues treasury bonds in accordance with the issuance standards agreed by the capital market, and has the four characteristics of short subscription period, fixed transformation standards, unlimited transformation institutions, and transferable medium and long-term bonds;

2. Public bidding: also known as bidding, bidding and issuance in the capital market. It is mainly applicable to short-term ** sector bonds, especially treasury bonds issued by the treasury, and the issuance method is the public offering method;

3.Continuous distribution: also known as sales distribution, refers to a more flexible distribution method entrusted by the issuer to set up a professional service desk in the financial system;

4. Undertake the issuance method: also known as the direct sales of products, the administrative agency directly conducts one-to-one negotiations with the buyer.

The Ministry of Finance announced the treasury bond issuance plan for the first quarter of 2022 on January 4. If there is any change in the implementation of the announcement, the issuance documents of the treasury bonds at that time shall prevail.

Extended Resources: Definition of Debt Bonds.

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Treasury bonds, also known as state public bonds, are creditor's rights and debts formed by the state on the basis of its credit and in accordance with the general principles of bonds to raise funds through the issuance of bonds to the society. Treasury bonds are a kind of bonds issued by **** to raise financial funds, issued by **** to investors, promising to pay interest and repay the principal at maturity in a certain period of time, because the issuer of treasury bonds is the state, so it has the highest creditworthiness, is recognized as the safest investment tool.

2. Characteristics of national bonds.

1. From the perspective of the subject of legal relations.

The creditor of the treasury bond can be a citizen, legal person or other organization at home and abroad, as well as a national or regional ** and an international financial organization, while the debtor can generally only be a state.

2. From the perspective of the nature of the legal relationship.

Although the legal relationship of national debt is an equal legal relationship compared with other financial legal relations, compared with the general creditor's rights and debts, it reflects a certain subordinate nature, which is more obvious in the legal relationship of domestic debts of the state.

3. From the perspective of the realization of legal relations.

Treasury bonds belong to the creditor-debtor relationship with the highest credit rating and the best security.

4. From the debtor's point of view.

Treasury bonds are voluntary, compensatory, and flexible.

5. From the perspective of creditors.

Treasury bonds have the characteristics of safety, profitability and liquidity.

3. Classification of national bonds.

1. According to the different ways of borrowing debts, it can be divided into national bonds and state loans;

2. According to the different repayment periods, it can be divided into fixed treasury bonds and irregular treasury bonds;

3. According to the issuance region, it can be divided into national domestic debt and national foreign debt;

4. According to the nature of issuance, it can be divided into free treasury bonds and compulsory treasury bonds;

5. According to the purpose of use, it can be divided into deficit treasury bonds, construction treasury bonds, special treasury bonds and war treasury bonds;

6. According to whether it can be circulated, it can be divided into listed treasury bonds and unlisted treasury bonds;

7. According to the liquidity of bonds, they are divided into negotiable treasury bonds and non-negotiable treasury bonds;

8. According to the standard of issuing certificates, it can be divided into voucher treasury bonds and book-entry treasury bonds.

1. Balance fiscal revenue and expenditure.

Increasing tax revenues, issuing more currency, and issuing government bonds are common methods for balancing fiscal revenues and expenditures. However, increasing taxes will increase the tax burden on enterprises and individuals, and the issuance of additional currency will risk causing inflation. Therefore, when it is not feasible to raise taxes or issue additional currency, the state will balance its fiscal revenue and expenditure by issuing treasury bonds, and make up for the fiscal deficit with idle personal funds.

2. Raise construction funds.

The amount of funds required for large-scale infrastructure and public facilities construction projects in the state is usually very large, and the project implementation period is long, and the state can raise funds for the project through the issuance of medium and long-term treasury bonds to reduce the financial pressure.

3. Repay the maturing national debt.

When the issued treasury bonds mature, if the financial funds are relatively tight, then new bonds can be issued, and the new bond funds raised can be used to repay the principal and interest of the old mature bonds.

4. Raise military spending.

This is a less common type of trigger purpose, and it is common to issue government bonds to raise military spending in the event of a war in the country. It is also known as a war national debt.

In which year the Treasury bills were issued and which pair ended.

Treasury securities are issued in which year and which pair of bonds are exchanged to end the treasury securities starvation, which refers to a kind of ** bond issued by the national financial authorities to make up for the imbalance of the treasury balance. Treasury bills were invented in 1877 by the British economist and writer Walter Bazot and were first issued in the United Kingdom. Because the debtor of treasury bills is the state, and its repayment guarantee is the state's fiscal revenue, it has almost no credit default risk, and it is a credit instrument with the smallest risk in the financial market.

The shortest maturity of China's treasury bills is one year, while there are many varieties of treasury bills in Western countries, which can generally be divided into four types: 3 months, 6 months, 9 months, and 1 year, and their denominations vary from country to country.

Answer] :d issued at a discount of less than the face value, that is, discounted issuance, and repaid at face value at maturity, the difference between the face value and the issue price is the interest on the bond. This is the way in which Treasury bills are issued and priced.