Treasury bonds are debt certificates issued to the public in order to raise funds, and are an important financial instrument and financial instrument. The issuance of treasury bonds can not only meet the financial needs of the country, but also regulate the amount of money, stabilize market interest rates, and promote economic development. So, how are Treasury bonds issued? This article will introduce the process of treasury bond issuance from the following three aspects:
Decisions and announcements on the issuance of treasury bonds.
Ways and means of issuing treasury bonds.
Settlement and management of treasury bond issuance.
1. Decision-making and announcement on the issuance of treasury bonds
The decision on the issuance of treasury bonds is based on the country's financial situation and economic situation, taking into account factors such as the scale, maturity, interest rate, and purpose of treasury bonds, and formulating corresponding policy documents, which are implemented after approval. Decisions on the issuance of treasury bonds generally include the following:
The total amount of government bonds and the amortization arrangement.
The variety and maturity structure of treasury bonds.
The level of interest rates on government bonds and the way interest is paid.
The purpose and use of the issuance of treasury bonds.
The time and place of issuance of Treasury bonds.
Underwriting institutions and underwriting methods of treasury bonds.
Distribution agencies and distribution methods of treasury bonds.
The registration and custody institutions and registration custody methods of treasury bonds.
The market and trading method of Treasury bonds.
The institution and method of payment of treasury bonds.
In addition to the above-mentioned decision-making content, the announcement of the issuance of treasury bonds is made by the Ministry of Finance through ** or official channels to the public to publish the relevant information of the issuance of treasury bonds, so that investors can understand the basic situation of treasury bonds and make investment preparations. The following has been added to the announcement of its bond issuance:
The name of the national debt and **.
The size and maturity of the issuance of treasury bonds.
The interest rate and interest payment date of the Treasury bond.
The value date and maturity date of Treasury bonds.
How and when Treasury bonds are issued.
Subscription conditions and subscription procedures for treasury bonds.
2. Ways and methods of issuing treasury bonds
The method of treasury bond issuance refers to the form of issuance of treasury bonds, and there are two main types: book-entry treasury bonds and voucher treasury bonds. Book-entry treasury bonds are a type of paperless treasury bonds that are registered and transferred through electronic accounts and do not require physical vouchers. Certificate-type treasury bonds are a kind of paper-based treasury bonds, which prove claims through physical vouchers and need to be delivered and redeemed in kind.
The method of treasury bond issuance refers to the pricing and placement methods of treasury bonds, and there are two main types: competitive bidding and offtake and underwriting. Competitive bidding is a market-oriented issuance method, through the bidder's direct bidding to determine the issuance ** or interest rate, in accordance with the principle of winning the bid for the placement. Underwriting is an administrative issuance method, which is negotiated between the Ministry of Finance and the underwriting agency to determine the issuance** or interest rate, and the placement is carried out in accordance with the distribution principle.
According to different types of treasury bonds and market demand, the ways and methods of treasury bond issuance can be flexibly combined to form a variety of issuance models. At present, China mainly adopts the following distribution models:
Competitive bidding for book-entry treasury bonds. This is the most common issuance model, which is mainly applicable to medium- and long-term treasury bonds and short-term treasury bonds. This model issues treasury bonds to institutions and other investors qualified as treasury bond underwriters through the trading system of the interbank bond market and the ** exchange. The advantage of this model is that it can fully reflect the market supply and demand, reflect the true value of government bonds, and improve the liquidity and transparency of government bonds.
Underwriting and issuance of book-entry treasury bonds. This is a less commonly used issuance model, which is mainly applicable to government bonds for special purposes, such as earthquake relief bonds, railway construction bonds, etc. This model determines the issuance** or interest rate through negotiation between the Ministry of Finance and the members of the treasury bond underwriting syndicate, and the underwriting syndicate members assume the underwriting responsibility and issue treasury bonds to designated investors. The advantage of this model is that it can ensure the smooth issuance of treasury bonds, meet the special needs of the first country, and reduce the issuance cost of treasury bonds.
Underwriting and issuance of certificate-type treasury bonds. This is a traditional issuance model that is mainly applicable to savings bonds. In this model, the Ministry of Finance and the members of the savings treasury bond underwriting syndicate negotiate to determine the issuance** or interest rate, and the underwriting syndicate members assume the underwriting responsibility and issue treasury bonds to the public. The advantage of this model is that it can expand the investor base of treasury bonds, increase residents' willingness to save, and promote the popularization and publicity of treasury bonds.
3. Settlement and management of treasury bond issuance
The settlement of treasury bond issuance refers to the delivery and payment process of treasury bonds, which mainly involves the registration and custody of treasury bonds, transaction clearing and fund transfer. The settlement of treasury bond issuance is generally the responsibility of professional institutions, such as ** Treasury Bond Registration and Clearing Co., Ltd., People's Bank of China, China ** Registration and Clearing Co., Ltd., ** Exchange, etc.
The management of treasury bond issuance refers to the supervision and service of the duration and redemption period of treasury bonds, which mainly involves the information disclosure, interest payment, holder meeting, redemption and exchange of treasury bonds. The Ministry of Finance and the treasury bond underwriting institutions are generally responsible for the management of treasury bond issuance, and at the same time, they also need the cooperation and support of the treasury bond registration and custody institutions, trading market institutions, and redemption institutions.
The settlement and management of treasury bond issuance is an important part of treasury bond issuance, which has a direct bearing on the security, efficiency, and credibility of treasury bonds, and is of great significance for maintaining the stability and development of the treasury bond market.
Conclusion
Treasury bond issuance is a complex and systematic process involving multiple entities and links, and requires certain rules and procedures to be followed. This article answers from the decision-making and announcement, ways and methods, settlement and management of treasury bond issuance, I hope it will be helpful to you, if you have other suggestions, please leave a message in the comment area, thank you for reading and supporting!