The difference between buying treasury bonds and buying treasury bonds reverse repo

1. Different in nature: Treasury 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 bond reverse repurchase is that individuals lend their own funds through the treasury bond repurchase market to obtain fixed interest income.

2. Different varieties: Treasury bonds are a kind of financial assets that continue to increase in value in a certain period of time, while the reverse repurchase business of treasury bonds is a financial variety that can improve the value-added ability of idle funds for investors.

3. Different subjects: The issuer of treasury bonds is the state, so it has the highest credit degree and is recognized as the safest investment tool. The reverse repo of government bonds can be either a state or an individual.

What is Treasury reverse repo?

Treasury reverse repurchase is a short-term borrowing method, such as: you have money, I have a price, you lend me money for a day or dozens of days, and I will return the interest to you after the appointment, and you will release my value ** from the pledge.

Treasury reverse repo is divided into Shenzhen and Shanghai! Shenzhen 1318 starts, 1000 yuan for a unit, 1000 yuan to buy, the shortest number of days to occupy 1 day, the longest 182 days; At the beginning of Shanghai 204, 100,000 yuan is a unit, 100,000 yuan is purchased, and the minimum number of days occupied is 1 day and the longest is 182 days;

Is the reverse repo of treasury bonds risky?

Treasury reverse repo is a low-risk, low-risk product in wealth management products, which can be said to be zero risk, and the principal is safe and secure; In addition, the handling fee is low, the liquidity is strong, and the interest rate at the end of the month and the beginning of the month is high!

What is Treasury Bonds?

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 creditworthiness, is recognized as the safest investment tool.

Treasury bonds are issued by the state, treasury bonds are the most secure of all domestic financial products, known as zero-risk investment tools, really because of the high security of treasury bonds, high yield, favored by many old people, many old people's pension money is directly purchased long-term treasury bonds, so worry-free, the most important thing is to help these old people resist inflation.

What is the difference between reverse repo and treasury bonds?

Treasury bond reverse repurchase is a kind of short-term wealth management product, and foreign debt is a kind of debt issued by the state, and the two natures are different; But it can be understood that the state borrows money from you, and after maturity, it will be returned to you at the agreed time with interest!

In fact, there are many differences, such as different purchase methods, different times, different interest rates, different transaction natures, etc.

Reverse repo can be understood as a person who buys treasury bonds and borrows money from you for a short period of time with treasury bonds as collateral, and you earn interest. Generally speaking, the annualized return of reverse repo of treasury bonds is certainly not as good as that of treasury bonds, but it is short and flexible.

Buying Treasury bonds is a purely long-term investment, such as a five-year Treasury bond, and you will not get a return until five years later.

There are 9 kinds of reverse repo trading varieties of treasury bonds, such as 1 day, 2 days, 3 days, and 4 days, and there are many periods to choose from, so why not recommend buying reverse repo of treasury bonds? What is the reason? Relevant content has been prepared for your reference.

The reason why it is not recommended to buy reverse repo of treasury bonds is that for conservative investors, they do not want to bear any risks, but the reverse repo of treasury bonds is risky, for example: when the transaction price is too low, the income is lower than the commission, then the reverse repo of treasury bonds will lose money, but the probability of occurrence is generally relatively small.

Secondly, in terms of income, the reverse repo of treasury bonds is not particularly prominent, and when the timing of the transaction is not right, it is not recommended to buy, for example: a 3-day reverse repo was operated on Friday, but the actual number of days of account for the payment is only 1 day, so the interest rate of the transaction is very unsatisfactory.

However, if you want to buy reverse repo of treasury bonds, it is generally recommended to buy reverse repo at the end of the quarter or half a year

Buying reverse repo bonds before the end of the year and statutory holidays, because the demand for funds in the market will increase at this time, the interest rate of reverse repo of treasury bonds at this time is higher, and the annualized rate of return will sometimes exceed 10%.

Or if you want to operate in the short term, you can choose to operate on Thursday**, according to the interest-bearing rules, the reverse repo of treasury bonds is calculated according to the specific number of days, if it is a reverse repo of treasury bonds on Thursday, then the specific number of days is weeks.

Five, week. 6. For three days on Sunday, you can enjoy three days of interest.

Reverse repo of treasury bonds.

There are mainly the following purchase tips:

1. It is better to buy 2 days before the holiday, because the actual occupation of funds is more, so you can also enjoy the benefits on weekends or holidays, and the interest rate for buying two days before the holiday is relatively high.

Second, the reverse repo trading time of treasury bonds is the same as the trading time, generally people who need funds are borrowing in the morning, so the interest rate in the morning will be higher than the interest rate in the afternoon, and investors can choose to buy reverse repo in the morning.

3. Investors with a capital of more than 100,000 yuan choose the Shanghai Stock Exchange.

Because the starting point of the purchase is high, the reverse repo income ratio of the Shanghai market is **.

The starting point is high. 4. Choose the time to lend according to the idle time of the funds. For example, 9 days after the Mid-Autumn Festival in 2021 is the National Day, you can choose a 7-day reverse repo, and after the Mid-Autumn Festival reverse repo expires, you can choose the reverse repo during the National Day period.

Treasury bonds are the creditor-debtor relationship formed by the state on the basis of its credit and raising funds through the issuance of bonds to the society, which is essentially bonds; Treasury reverse repo is that individuals lend their own funds through the treasury bond repurchase market to obtain fixed interest income, which is essentially short-term borrowing;

The issuer of treasury bonds is the state, while the reverse repurchase of treasury bonds can be the state or an individual.

Bond reverse repo refers to the investor who lends the funds to the repurchaser (borrower) through the market and the repurchaser (borrower) in the market to obtain the interest due. The repurchaser (borrower) uses bonds (treasury bonds, corporate bonds) as collateral to repay the principal and pay interest at maturity. Therefore, the reverse repo of bonds includes the reverse repo of treasury bonds and the reverse repo of corporate bonds, and the difference is that the mortgage bonds are different.

Reverse repo of treasury bonds can be understood as a short-term loan in the form of treasury bonds as collateral by the person who bought the treasury bonds, and the loanee can earn interest. Generally speaking, the return of reverse repo of treasury bonds will not be as high as the return of buying treasury bonds, but it is shorter, and such capital turnover is more flexible.

The purchase of treasury bonds is a purely long-term investment, which is generally divided into three years and five years, and the longer the period, the higher the return. However, it will not be able to yield until it matures, just like a five-year Treasury bond, which will not yield until five years later.

Difference Between Treasury Reverse Repo and Treasury Bonds:

The nature is different. Treasury bonds are the creditor-debtor relationship formed by the state on the basis of its credit and raising funds through the issuance of bonds to the society, which is essentially bonds; Treasury reverse repo is that individuals lend their own funds through the treasury bond repurchase market to obtain fixed interest income, which is essentially short-term borrowing;

The issuer is different.

The issuer of treasury bonds is the state, and the reverse repo of treasury bonds can be either the state or an individual.

There are different types of investments.

Treasury bonds are financial assets that continue to increase in value over a certain period of time, and reverse repo of treasury bonds is a financial variety that can improve the appreciation ability of idle funds for investors.