Research On Treasury Bond Investion Strategy Of China

Nowadays,the economic of China is developing constantly.Treasury bond market of Chinaalso become more and more mature . Treasury bond secondary market is divided into threesub-market: Exchange market,Bank to Bank market and Counter market.We can use spline approximation method to calculate term structure of interest rates ofTreasury bond .After that we can use main factor analysis to find out which factor is mainlyaffected the interest cruve's change. At last we can built two factors Vasicek model.Investors will encount lots kind of risks. When they invest Treasury bond .So they couldtake various strategies to avoid risks. There are two kinds of strategies in Treasury bond market.One is positive strategy, the other is passive strategy.Marketization of interest rate ask Treasury bond market's evolution .In the future interestof Treasury bond could be considered as "basis interest".An unify market is needed. There areseveral new investion tools in Treasury bond market, such as forward,futures,option ,strip andrepo. Different tools needs different strategies.