2023 has finally come to its final month. However, for those who want to buy Treasury bonds, there is still a chance this year, because there are still quite a few Treasury bonds to be issued in December. So, what other treasury bonds will be issued in December?How can I buy it?
According to the plan for the issuance of treasury bonds, the only treasury bonds to be issued in December will be book-entry treasury bonds, including book-entry interest-bearing treasury bonds and book-entry discount treasury bonds. The issuance of savings bonds has already ended this year, and the next issuance will not be until at least March next year. Book-entry treasury bonds are issued basically every month, and even the last month will not be left behind.
The treasury bonds to be issued in December basically include various maturities, with the shortest maturity being 28 days and the longest maturity being as long as 50 years. The following is the issuance time of each treasury bond:
Judging from the issuance plan, there are eight issues of treasury bonds to be issued in December, book-entry interest-bearing treasury bonds and book-entry discount treasury bonds, all of which will be issued on December 22, and except for two book-entry discount treasury bonds, the others have not yet been issued.
The above are only the treasury bonds to be issued in the plan.
In addition, the Ministry of Finance also announced that it intends to issue an additional 1 trillion yuan of special treasury bonds in the fourth quarter, but this batch of treasury bonds has not been issued in November, and if it is to be issued within the year, it can only be issued in December.
If the 1 trillion yuan of special treasury bonds will be issued in December, then the treasury bond market in December will be more lively, and the scale of additional treasury bonds may exceed the scale of the treasury bonds originally planned.
So, how to buy so many treasury bonds in December?
First of all, it's about the earnings. In book-entry interest-bearing treasury bonds, the longer the maturity, the higher the return. Therefore, the highest-yielding Treasury bond must be the 50-year one. At current market rates, the yield on 50-year Treasury bonds should be around 3%.
Some people may feel that 50 years is too long. In fact, to buy a 50-year treasury bond, you don't necessarily have to hold it for 50 years. Because book-entry treasury bonds can be listed and traded, they can be sold if they don't want them. In addition, the interest on 50-year treasury bonds is paid semi-annually, that is, you can get interest twice a year, so even if you do not hold it to maturity, it will not affect the annual interest income.
Of course, for book-entry Treasury bonds, it is not that the higher the yield, the more worthwhile it is to buy. Because there are some treasury bonds with different maturities, the yield may not be much different, such as 2-year and 3-year bonds, the yield is 243% and 247%, the difference is very small, if you want to decide to hold the maturity, it may be better to buy a 2-year one at this time.
On the other hand, book-entry discount treasury bonds are not necessarily the longer the maturity, the higher the interest rate. Because it is now approaching the end of the year, the demand for short-term financing is rising, so the interest rate of short-term treasury bonds is relatively high, for example, the interest rate of the 3-month bond is higher than that of the 6-month one.
Secondly, it is to look at liquidity. Normally, the shorter the maturity of the Treasury bonds, the better the liquidity. However, since book-entry treasury bonds can be listed and traded, the length of maturity does not play such a big role in determining the quality of liquidity.
Of course, it is more safe to buy treasury bonds and hold them to maturity. Because after the treasury bond is listed, there will be fluctuations, if it rises, it is fine, if it falls, it may cause a certain loss if it is sold before it expires. And if the holding expires, it will not affect you whether it is *** or **.
Since there are treasury bonds of various maturities to be issued in December, it is only necessary to choose the one that suits you.