Reaearch On Basic Functions Of Treasury Bong Futures

Treasury bond futures is an important financial derivatives, in December 1992 our country had trading bond futures contracts. Because of prevailing interest rates are regulated, can not play a leading role in the market, coupled with the overall national debt was less trading volume, excessive government intervention, finally broke out similar shocking 327 bond futures events. In order to avoid the re-occurrence of such an event, the China Securities will be formally terminated in 1995 bond futures trading. After a lapse of ten years, along with China’s economic development, as well as increasing levels of supervision, the introduction of bond futures imperative. China’s securities will be officially launched in late 2012 bond futures simulation trading, bond futures marked a return to the history of the stage, for the majority of investors to provide the means to avoid interest rate risk.Treasury futures have major price discovery function, hedging and arbitrage function three functions. Treasury futures birth and the United States, the United States was experiencing two oil crises, interest rate fluctuations is very frequent, is to meet the majority of investors to avoid the need for interest rate risk, bond futures and achieved great success, now has become the world of the 1970 s The most important financial derivatives. According to the latest World Bank and the US Treasury futures clearing organization statistics accounted for four percent interest rate futures. Treasury futures as a financial derivatives, interest rate market, hedging and market risk aversion has an irreplaceable role. Because of this, our country in September 2013 officially launched a bond futures, which will help China’s interest rate in the market, more emphasis on the role of the market, the elimination of administrative intervention in the past, and promote China’s economic development.This paper first reviews the development process of China’s bond futures, as well as with US Treasury futures were compared, hoping to discover the characteristics of bond futures. Empirical part mainly uses bond futures price data discovery function of bond futures, hedging and arbitrage function analysis. Because fewer bond futures just launched soon, the domestic bond futures research papers, and therefore functional significance of our empirical study of the major bond futures. I hope this article can make the public more aware of bond futures, bond futures for the development and the development of financial derivatives in our country, to provide some meaningful thought.