What does higher Treasury yields mean?

1. Investors buyU.S. Treasurieswill lead to a portion of international capital flows to the United States.

2. U.S. Treasury yields.

The superficial rise is actually equivalent to increasing the amount of the dollar, and the scale of the US debt is huge, and the faster the interest rate is raised, the faster the depreciation will be.

3. The rise in U.S. Treasury yields is first and foremost due to fiscal pressure in the United States. In order to solve the fiscal crisis, the United States has issued bonds on a large scale, and the rise in yields means that the burden of interest repayment will increase in the future.

4. As the largest holder of U.S. bonds, the total amount of U.S. bonds held by foreign buyers will directly or indirectly affect the credit expansion in the United States, so they are the dollar exchange rate.

The key factor for the rise and fall is that if the demand for US bonds from overseas investors remains stagnant, US bonds will be sold off, which may trigger a crisis in the US domestic repo market and hit the US dollar exchange rate.

The second floor is not exempt. Higher Treasury yields mean that inflation is high. The currency began to depreciate. All the money goes to the region to lead to high prices!

It's the national debt.

It shows that investors are starting to sell Treasuries.

There is a sense of distrust.

If the yield itself is not high.

It can be understood that investors have withdrawn from the treasury bond market and invested in high-risk assets such as **.

Attracting people to buy treasury bonds, there are too many treasury bonds at home and no one buys them, so they have to raise the price.

In general, the rise in long-term treasury bond yields is a spontaneous behavior of the market, and the rise in treasury bond interest rates has two meanings: the other asset market is very good, and the withdrawal of funds leads to the rise in treasury bond interest rates; Or the total amount of money in circulation has decreased, and there is no money in any market. But either way, you may end up with less money circulating in the market.

Extended Materials: National Debt (National Debt; Government loan, also known as state public debt, is a creditor-debtor relationship formed by the state on the basis of its credit and in accordance with the general principle of debt by raising funds from the society.

Treasury bonds are bonds issued by the state, is a kind of bond issued by the state to raise financial funds, is issued by the company to investors, promises to pay interest in a certain period of time and repay the principal at maturity of the creditor's rights and debt certificates, because the issuer of national bonds is the state, so it has the highest credit, is recognized as the safest investment tool.

China's treasury bonds refer to the national bonds issued by the Ministry of Finance on behalf of the Ministry of Finance, which are guaranteed by the national financial credibility, and have always been known as "gilt bonds", and prudent investors like to invest in treasury bonds. There are three types of treasury bonds: voucher treasury bonds, bearer (physical) treasury bonds, and book-entry treasury bonds.

According to different criteria, government bonds can be classified as follows:

According to the different ways of borrowing, government bonds can be divided into state bonds and state loans.

National bonds: It is the formation of a legal relationship of national bonds through the issuance of bonds. State bonds are the main form of domestic debt, and the main forms of state bonds issued by China include treasury bonds, national economic construction bonds, and national key construction bonds.

State borrowing: It is in accordance with certain procedures and forms, and the borrower and the borrower jointly negotiate and sign an agreement or contract to form a legal relationship of national bonds. State borrowing is the main form of foreign debt, including foreign loans, loans from international financial organizations and loans from international business organizations.

According to the repayment period, government bonds can be classified into term government bonds and indefinite government bonds.

Term treasury bonds: refers to treasury bonds issued by the state with strict deadlines for repayment of principal and interest. Term treasury bonds can be divided into short-term treasury bonds, medium-term treasury bonds and long-term treasury bonds according to the length of the debt repayment period.

Short-term treasury bonds: Usually refers to treasury bonds with a maturity of less than one year, mainly for the purpose of adjusting the temporary surplus of treasury capital turnover, and has greater liquidity.

Medium-term treasury bonds: refers to treasury bonds with a maturity of more than 1 year but less than 10 years (including 1 year but not including 10 years), which can make the use of debt funds relatively stable by the state because of its long repayment time.

Long-term treasury bonds: refers to treasury bonds with a maturity of more than 10 years (including 10 years), which can enable ** to dispose of financial resources for a longer period of time, but the income of the holder will be affected by the currency value and prices.

Indefinite treasury bonds: refers to treasury bonds issued by the state that do not stipulate the period for repayment of principal and interest. Holders of such government bonds receive interest on a regular basis, but do not have the right to demand payment of their debts. This is the case with permanent government bonds issued in the UK.

The decline in the yield of treasury bonds means that the best of other investments is good, and the money-making effect is high, which will attract more investors who originally invested in treasury bonds to invest in **, at this time, the demand for treasury bond investment will decrease, and the expected yield of treasury bonds will decline, and the expected yield of treasury bonds will decline mainly due to the combined impact of market interest rates and investors' risk appetite ** resulting in a decrease in demand for treasury bond investment. The yield includes the coupon yield and the actual yield, the coupon yield is fixed and cannot be changed, and the actual yield is affected by the rise and fall of the treasury bonds. If the yield of government bonds continues to fall, the money supply will increase and the financial environment will be relaxed.

The market interest rate** will lower the yield of Treasury bonds, because after the market interest rate**, the Treasury bonds with a fixed coupon rate will attract the chase of the market, thereby raising the ** of Treasury bonds, and the real yield will decrease. The market interest rate ** represents the increase in money supply and the loosening of the capital environment, because the interest rate is the ** of funds, and the interest rate ** naturally indicates that the money supply increases.

Extended Materials. 1. Definition of national debt.

Treasury bonds are bonds issued with the endorsement of the country's credit system and the guarantee of national fiscal revenue, so treasury bonds are also known as zero-risk financial management methods by the market.

2. Factors affecting the yield of government bonds.

1. National credit: In fact, the issuer of treasury bonds is the state, and generally speaking, there is no risk of default, but when the country is turbulent and the regime changes, the national credit is very low, for example, the previous European debt crisis is a typical representative, and the yield of Greek government bonds was as high as 20%.

2. The current bank fixed deposit interest rate: the interest rate of the treasury bond issuance will refer to the bank's fixed deposit interest rate in the same period, generally speaking, the interest on the treasury bond will be higher than the bank fixed deposit interest in the same period, otherwise the issuance of treasury bonds will be more difficult, under the same risk conditions, investors will tend to choose financial products with high returns.

The decline in the yield of Treasury bonds means that the interest rate **, in essence, is also a kind of bond, but it is relatively a special bond with the highest safety factor, and it will also be like all bonds, the expected yield of Treasury bonds is affected by the current market interest rate. When interest rates fall, the expected yield of treasury bonds**, and when the interest rate **, the expected yield of treasury bonds falls, and the two show a negative correlation, especially book-entry treasury bonds, which can be traded through the Shanghai and Shenzhen** exchanges, and the interest rate has a particularly obvious impact on its expected yield.

Extended information: 1. As one of the wealth management products, treasury bonds will also be affected by supply and demand like all wealth management products. When ** or other investments are good, the money-making effect is high, it will attract more investors who originally invested in treasury bonds to invest in **, at this time the demand for treasury bond investment will decrease, and the expected yield of treasury bonds will decline, on the contrary, when **** is not good, investors' risk aversion will increase, and they will invest in treasury bonds, the demand for treasury bonds will increase, and the expected yield of treasury bonds will also be **.

Therefore, the decline in the expected yield of government bonds is mainly due to a combination of market interest rates** and investors' risk appetite** leading to a decrease in investment demand for government bonds. It is a normal behavior of market regulation, and has nothing to do with whether the treasury bonds are safe or whether they can be exchanged on time. Tips:

Financial management is risky, and investment needs to be cautious.

2. Although the yield of U.S. Treasury bonds corresponds to the sharp rise in U.S. Treasury bonds, at the same time as this asset, it is also accompanied by a lot of ink in the market - a market liquidity crisis. Due to the huge size of the U.S. Treasury debt, its ** has skyrocketed, which means that money flows out of almost all varieties (**, corporate bonds, commodities, and even **). The full sell-off of this kind of investment will naturally cause market imbalances.

That is, sell more, buy less, and no one has received the goods at the same time, which brings liquidity risks. After the previous sharp fall in U.S. stocks, there was a miracle of ** and ** falling together, which is a reaction to this phenomenon. This makes the traditional risk-averse varieties lose their hedging function.

When the selling tide is surging, resulting in a can't be sold at a price, or even can't be sold, people who need money can only sell the hard currency in their hands - **.

Treasury yield refers to the ratio of the income from investing in Treasury bonds to the total amount invested each year.

1. Treasury bond yield refers to the ratio of the income from investing in treasury bonds to the total amount of investment each year. The rate calculated on a one-year basis is the annual rate of return. Bond yields are usually expressed as "%" annual yields.

2. Calculation method of treasury bond yield: nominal yield; Nominal rate of return = annual interest income Face value of the bond 100% From this formula, we can know that the nominal rate of return of the bond will only be equal to the real rate of return if the bond issuance** and the face value of the bond remain the same.

3. Spot yield. The spot yield, also known as the current yield, refers to the ratio of the investor's return at that time to the investment expenditure. That is: spot rate of return = annual interest income 100% of investment expenses.

4. The rate of return during the holding period. Since bonds can be bought after issuance or sold without waiting for repayment to mature, the problem arises in calculating the yield of this bond holding period. Yield during the holding period = [annual interest + (sell**-****) number of years held] **** 100%.

5. Subscriber yield. The rate of return during the period from the new issuance of bonds to the repurchase of principal and interest at the end of the repayment period is the subscriber's rate of return. Subscriber's rate of return = [Annual interest income + (face value - issue**) Repayment period] Issue** 100%.

6. Yield to maturity. Yield to maturity refers to the average annual yield of an investor's bond issued in the secondary market** and held it for the period up to maturity.

represents a rise in the risk of the country's national debt

Among the many treasury bonds, the 10-year treasury bond is the most liquid variety of medium and long-term treasury bonds, because 10 years often contains an economic cycle, so the 10-year treasury bond yield is a good indicator of the economic trend.

The principle of this is that as a risk-free yield asset, people will only buy a large number of treasury bonds when there is no better investment opportunity in the future, and the demand for large quantities will inevitably raise the yield and lower the yield, so this situation will occur when the economy is in a recession.

If the economy grows rapidly, whether it is the real economy or the financial market, everyone feels that it is everywhere, at this time, treasury bonds need to take the initiative to raise interest rates in order to attract the attention of investors, and the yield of treasury bonds will also follow.

In addition to measuring the profit and loss of treasury bond trading, the yield of treasury bonds will also be added to the interest income of treasury bonds, which is a comprehensive measure of the return on investment of treasury bonds.

Treasury yield = (interest rate + (100 - Guotan volt bond**)) 100. For example, if a 100 Treasury bond is sold for 99 yuan, and the interest rate of the Treasury bond is 2%, then the yield of the Treasury bond = 3 100 = 3%.

According to the capital asset pricing model, the risk-free rate of return provides an anchor for the pricing of all financial assets in a country, implying the expected long-term return on investment, and the yield on 10-year government bonds means the anchor of social financing costs.

Treasury yields also reflect the tightening of money in a country's money market. When the yield of treasury bonds rises, it means that there are fewer people buying treasury bonds, and there are two situations in the short term: one is that the market of other major types of assets is good, and the funds in the bond market are withdrawn, and the other is that the funds in all asset markets have become less, and liquidity is tight, that is, the world is not good, everyone is holding on to money, and cash is king.

For example, in 2020, the yield of U.S. bonds appeared, which was actually the emergence of the U.S. market and the commodity market, which brought about liquidity problems, because investors needed to make up their positions to amortize the cost in **, and those who added leverage also needed to replenish funds for the margin account, so there was a problem with liquidity in the market, and there was a situation of double killing of stocks and bonds.