01 Meaning
Treasury bonds refer to a kind of debt certificate issued by the state to the public on the basis of its credit, with a commitment to repay principal and interest.
02 Features
1.Treasury bonds are a low-risk investment vehicle because they have the highest credit rating and the likelihood of default is very low.
It is known as "gilt".
2.Treasury bonds can provide a steady stream of interest income, usually higher than the bank's interest rate.
3.Treasury bonds can be traded in the ** market, and can realize the flexible allocation and value appreciation of funds according to market changes.
Click Add Description (up to 60 words) to edit03 Purpose of issuance
1.Raising military expenditures;
2.Balance fiscal revenues and expenditures;
3.Raising funds for construction;
4.The issuance of loan-for-money bonds (i.e., new debt for old debt).
04 Types of Treasury Bonds
1.Certificate Treasury Bonds: In layman's terms, you go to the bank to buy Treasury bonds, and then the bank gives you a voucher as proof that you lend money. It is a kind of treasury bond that can be registered and reported as lost, but cannot be listed and transferred.
2.Bearer treasury bonds: physical treasury bonds, bearer bills, no loss reporting, can be listed and circulated. Since 1997, China has ceased to issue physical treasury bonds.
Click Add Description (up to 60 words) to edit 3Book-entry treasury bonds: In layman's terms, it is to record the money owed to you by the state through computer bookkeeping, it can be listed and circulated, before it matures, it cannot be withdrawn in advance, but it can be sold through ** (account.