What is the use of buying treasury bonds, and the pros and cons of buying treasury bonds

The main purposes of the state's issuance of treasury bonds are:

1. Balance fiscal revenue and expenditure.

2. Raise construction funds.

3. Repay the maturing national debt.

4. Raise military spending.

Further information: Treasury bonds, also known as national 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.

The national debt is ****.

In order to raise financial funds.

And a kind of ** bond issued.

The creditor's rights and debt certificates issued by **** to investors and promise to pay interest and repay the principal at maturity in a certain period of time have the highest credit rating and are recognized as the safest investment tools because the issuer of treasury bonds is the state.

Treasury bonds are a special form of debt, which has the following characteristics compared with the general creditor's rights and debts:

from the subject of legal relations.

From the point of view, 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 international financial organization, while the debtor can generally only be a state.

From the perspective of the nature of the legal relationship, the occurrence, alteration and extinction of the legal relationship of the national debt more reflect the unilateral will of the state, although compared with other financial legal relations, the legal relationship of the national debt is an equal legal relationship, but compared with the general creditor's rights and debts relationship, it reflects a certain subordinate nature, which is more obvious in the legal relationship of the state's domestic debt.

According to different criteria, government bonds can be classified as follows: according to the different ways of borrowing, government bonds can be divided into national bonds.

and state borrowing.

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 state bonds issued by China are treasury bills.

National economic construction bonds, national key construction bonds, etc.

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.

What is Treasury Bonds? What are the characteristics of national debt?

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.

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 are creditor-debtor relationships 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.

Benefits: Treasury bonds are less risky, generally known as "risk-free rate of return", the yield of treasury bonds is stable, the annualized return is about 3% (subject to the product), treasury bonds are highly liquid, certificates and savings can be redeemed in advance, there will be certain fees or interest deductions for early redemption, and electronic treasury bonds can be sold directly online.

Disadvantages: The treasury bond purchase platform is relatively simple, mainly purchased in banks, and the maturity of treasury bonds is long, and the interest difference will be lost if it encounters special circumstances such as interest rate hikes.

Extended Material: Buying Treasury Bonds:

1.Purchases of bearer treasury bonds: Bearer treasury bonds are mainly purchased by various institutional investors and individual investors.

The purchase of treasury bonds with bearer physical vouchers is the easiest. During the issuance period, investors can go to the outlets of major banks and ** institutions that sell bearer treasury bonds, and fill in the form to purchase with the money.

2.Purchase of certificate treasury bonds: Certificate treasury bonds are mainly issued to individual investors.

Its issuance and redemption are handled through the savings outlets of major banks, the outlets of postal savings departments, and the treasury bond service departments of the finance departments. Its outlets are all over the country's urban and rural areas, which can meet the needs of the masses to purchase and redeem to the greatest extent.

3.Purchase of book-entry treasury bonds: The purchase of book-entry treasury bonds can be bought and sold over the counter of ** companies and pilot commercial banks.

The pilot commercial banks include branches of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, China Merchants Bank, Bank of Beijing and Bank of Nanjing, which have opened a treasury bond over-the-counter trading system across the country.

Every issuance of treasury bonds may trigger a rush to buy, so in the case of limited quota, bank staff advise the public to make arrangements as soon as possible to avoid not being able to buy them. It is worth mentioning that treasury bonds can be withdrawn in advance, and interest is calculated by the file.

Characteristics of the national debt:

Compared with savings, the main characteristics of certificate treasury bonds are safety, convenience, and moderate returns. Specifically:

1. There are many outlets for the issuance of certificate-type treasury bonds, which is convenient for purchase and redemption, and the procedures are simple;

2. It can be registered and reported as lost, and the security of holding it is better;

3. The interest rate is 1 or 2 percentage points higher than the bank's deposit interest rate in the same period (but lower than that of bearer and book-entry treasury bonds), and the interest will be calculated at a progressive interest rate according to the holding time when redeemed in advance;

4. Although certificate treasury bonds cannot be listed and traded, they can be redeemed in advance, and the realization is flexible, and the location is nearby, and investors can go to the original purchase point to redeem cash at any time if they encounter special needs;

5. The interest risk is small, and the interest rate of each grade is higher than or equal to the bank deposit interest rate in the same period, and there is no risk that the interest rate of the fixed savings deposit can only be calculated on demand basis if the interest rate is withdrawn in advance;

6. There is no market risk, certificate treasury bonds cannot be listed, and the first (principal and interest) when redeemed in advance does not change with the change of market interest rate, which can avoid market risk.

Purchase of Treasury bonds. 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 principle of raising funds from the society. Treasury bonds are bonds issued by the state, which is a kind of bond issued by the central government in order to raise financial funds, and is a debt certificate issued by the central government to investors, promising to pay interest and repay the principal at maturity.

1. Convenient to buy and sell. At present, the first business department has opened self-service entrustment, therefore, the investment in listed treasury bonds can be directly entrusted to buy and sell through **, computers, etc., and there is no need to go to the bank branch or counter in person like deposits or purchase of unlisted treasury bonds, which is convenient and time-saving. 2. High and stable income.

Compared with bank deposits, all listed treasury bonds have high yields. This high yield is mainly reflected in two aspects: First, the interest rate is high.

The yield of listed treasury bonds at the time of issuance and listing is higher than the bank deposit interest rate at that time. Second, while enjoying the same convenience of withdrawing (selling) at any time as demand deposits, its yield is much higher than the interest rate of demand deposits.

1. Security. A high level of security, the treasury bond is guaranteed by the credibility of the **, which is extremely high and almost risky. The investment threshold is low, which is very suitable for ordinary investors to invest.

2. Strong liquidity. Listed Treasury bonds are highly liquid because they are listed on exchanges and have a lot of investors. As long as the ** exchange is open, investors can entrust to buy and sell at any time.

Therefore, if the investor does not plan to hold it for a long time, it is best to invest in the listed country only debt to ensure a smooth disposal at the time of **. 3. High interest rates. Treasury bonds have a higher interest rate compared to bank deposits, and for many people who don't know how to manage their finances, keeping money in the bank is the only way.

We might as well try to buy treasury bonds, which not only have a higher interest rate than bank fixed deposits, but also have a higher interest rate on early withdrawal of treasury bonds than on early bank fixed deposits. 4. Convenient for buying and selling. **The sales department has opened self-service entrustment.

Therefore, the investment in listed treasury bonds can be directly entrusted through **, computer, etc. There is no need to go to the bank or counter in person to deposit money or buy unlisted treasury bonds, which is convenient and time-saving, and there are many outlets for the sale of treasury bonds, which is convenient for purchasing and exchanging treasury bonds, and the procedures are simple. 5. High and stable returns.

All listed Treasury bonds have high returns compared to bank deposits. This high profitability is mainly reflected in two aspects: first, high interest rates.

The yield of listed treasury bonds at the time of issuance and listing was higher than the bank deposit interest rate in the same period. Second, while enjoying the convenience of withdrawing (selling) demand deposits at any time, their yields are much higher than the deposit interest rate.

There are many advantages to buying treasury bonds, the first is security, treasury bonds are guaranteed and will not let you lose money, and the second is that the interest rate is higher than bank deposits.

Buying Treasury bonds can obtain a stable income, and the interest rate is higher than the interest rate of the bank fixed period. The national debt will certainly not be lost on the first day. It will only go up, there is no risk.

Withdraw cash when it expires! There are difficulties in supporting the country. before issuing treasury bonds.

I've bought it too. Generally there are three years. There are also five-year ones.

But there is no risk. This rotten cavity can be reassured. If there is money.

I can buy one hundred thousand. Peace of mind. You this credential.

Don't lose it. Lost. It's a bit of a hassle.

The main advantage of buying treasury bonds is to support the state's construction of socks and oranges, and at the same time, you can get higher interest than ordinary bank deposits, and the treasury bonds are issued by the state, which is safe and reliable. Tell the grinding group.

Treasury bonds are issued by the country, and the biggest advantage is safety, and the second is that the interest rate of treasury bonds is higher than that of ordinary deposits, and you can have more interest.

What are the benefits of buying Guozheng Reserve Bonds? I think that treasury bonds are issued by the state, and treasury bills, of course, are very safe to dissipate, and I think it is very beneficial to buy treasury bonds for the benefit of the country and the people. Take the clear oak.

Treasury bonds, also known as national public bonds, are the creditor's rights and debts relationship formed by raising funds from the society in accordance with the general principles of bonds and the general principles of bonds.

It has supported the construction of the country and achieved the function of savings, which is beneficial to the country and itself.

There are three main types of national debt:

To buy treasury bonds, it is best to buy voucher and savings treasury bonds, which are relatively safe, and the term is generally 1 year, 3 years, and 5 years, and the 1-year period refers to the maturity after 1 year, and the state returns the principal and interest through the bank. The interest rate on these two types of Treasury bonds is slightly higher than that of bank fixed deposits during the same period. Purchases are mainly made through banks.

If you redeem it early, you will deduct the principal as a handling fee, and the interest will be calculated according to the length of the holding time. Taking the second-phase certificate treasury bonds issued on May 13, 2010 as an example, the 1-year coupon annual interest rate; 3-year coupon rate per annum; In the same period, the annual interest rate of bank fixed savings is one year and three years; If you buy certificate treasury bonds, the principal of 10,000 yuan, the interest of one-year treasury bonds is 35 yuan more, and the three-year treasury bond is 40 yuan more per year!

The other is book-entry treasury bonds, which are also the purchase of treasury bonds by opening a treasury bond account. Once this kind of treasury bonds are issued, they will be listed and traded through pilot banks and ** exchanges, but the annual interest rate of this kind of treasury bonds is relatively low, and some of the maturities are relatively long, the longest is 30 years or 20 years, which is not suitable for ordinary people to invest. You can bring your ID card to ICBC, Bank of China and other state-owned banks or ** companies to open an account, and you can buy it.

Book-entry treasury bonds can be bought and sold at any time, and they can be realized without holding them to maturity; Because book-entry treasury bonds can be bought and sold at any time, their ** are up and down like **, if you sell the treasury bonds ****, you will lose money; On the contrary, you can sell it to earn the difference; After the maturity of book-entry treasury bonds, the state still redeems them at 100 yuan each. The minimum transaction of book-entry treasury bonds is 1 lot, and 1 lot is equal to 10 lots, which is about 1,000 yuan face value. The yield of buying book-entry Treasury bonds is usually lower than that of voucher and savings bonds!

It depends on the market**!