A Study On The Investment Strategy Of Treasury Bonds In The Transitional Economy

The bond repurchase Treasuries derivatives, essentially based on the behavior of short-term financing of government bonds as collateral. With our restructuring and expanding the scale of the economic conditions the issuance of treasury bonds, the bond repurchase market gradually grow and develop, market transactions are increasingly active. The bond repurchase addition to the tool as investors arbitrage or monetary policy and fiscal policy, the smooth implementation of the important tools. Bond repo market is derived from the bond market, the size, type and impact of the government bond market and restricting the level of activity of the government bond repo market; same specification and development of the bond repurchase market, in turn affect the release and circulation of the national debt. Achieve its macroeconomic regulation and control, through the issuance of treasury bonds, the Ministry of Finance and the central bank to achieve the fine-tuning of the market supply of short-term funds, institutional and individual investors through bond repurchase financing arbitrage gains through bond repurchase. Thus, the bond repurchase become an important point of the fiscal policy and monetary policy, is also the financial investors financing indispensable behavior.China’s bond repurchase market in transition economic conditions due to the historical legacy factors and the constraints of the status of development of the securities market, still there are many problems. The entire repo market is divided into the inter-bank market and the exchange market. The inter-bank market, although more abundant capital, the development of a more stable, but the bond settlement system is still unable to meet the actual needs of the modern trading; Exchange market varies greatly because of their participation in the main, the trading system is imperfect, prone transactions confusion, managed liquidation risks even ultimately threaten the security and stability of the entire stock market. Many of the existing problems of China’s bond repurchase market investment in the transformation of economic conditions and policy functions can not be fully exploited.This paper discusses the main problems of the government bond repo market of China in the transformation of the economic conditions under the preliminary analysis of the national debt repurchase and bond repurchase market, of reference developed countries bond repurchase market development status quo, with the author’s own bond repurchase practical lessons and investment strategy, and summarize the available experience of the transformation of the economic conditions under reference, in order to constantly improve China’s government bond repo market, thus contributing in the transformation of the economic conditions under the government bonds market as well as the health of the entire stock market, stable and rapid development, and ultimately achieve the aim of the process of reform of the financial system in the transformation of economic conditions.