Based On The Predicted That China's Market Yield Curve Changes Of Bond Investment Strategy Research Actively

With the expansion of fund size and development of insurance institutions, the investor structure of the Chinese bond market gradually sees more and more diversification, which leads to even more intense game on the market interest rate. Also, investors face more difficulties to obtain excess returns through active bond investment strategy due to the strengthening of market effectiveness resulting from deepening of Chinese financial market and realization of interest rate marketization. Selecting bond transaction data for China inter-bank bond market from2007to2009of each trading day, using the Nelson-Siegel model to fit market yield curve, we analyze the feature of China bond market yield curve, the relationship between the fitting model parameters as well as the actual expression of the economic significance shown by these parameters. In the paper we further expand theoretical results to practical application. We study how investors’investment strategy change due to the changes of Chinese bond market yield curve. In the end we combine with changes in model parameters and changes of the yield curve to provide investors with the choice of bond investment strategy recommendations.