The Liquidity Measurement Of China Treasure Bond Market

Treasury bonds have both fiscal and financial functions.Specially,the financial function of Treasury bonds will be vital to the stability of a country's capital market and the healthy development of social economy,it also can enhance their ability to resist risk around the financial system.And,one of the important factors that affect its financial function is the market liquidity.By far,however,there are still some problems in the domestic bond market,such as the trading mechanism,transaction variety and investor structure of the inter-bank and exchange bonds are still difficult to meet the needs of economic and financial reform.Therefore,research on the liquidity is of practical significance to the reform of current capital market.First,at the very beginning,this article combed the domestic and foreign research situation about the bond market liquidity,and there is no consistent definition of bond liquidity in academia,but according to their more consistent understanding,this paper argues that smooth bond liquidity refers to the bond price changes under the premise of instant ability to buy and sell bonds.And then,according to the domestic and foreign research on the bond market liquidity index,general measurement methods include the price,trading volume method,the method of combination of quantity and price and time,etc.Considering the price spreads data of the bond are difficult to obtain,this paper use the Wind liquidity index,which involved in bond trading volume during a given period of time,clinch a deal with number of days,On the basis of this,the weighted average market liquidity index is obtained by weighting the volume of all valid trading coupons in each market,then,the analysis and comparison of different markets are carried out.Thirdly,the paper analyzes the influencing factors of the liquidity change of different nationalities and term bonds in the national debt market,and explores the influencing factors and reasons of the liquidity change.Secondly,the research object of this paper is the negotiable bonds in the inter-bank and two main exchange of treasury bonds in the secondary market.The counter market is not included in the research program because the market size is relatively small.Research methods,to take the basic chart trend analysis and comparative analysis,historical analysis and other methods to find intuitive trends and differences,and then combined macrolevel analysis to draw the conclusions.Again,this paper analyzes the development of the treasury bond market is relatively insufficient compared with the huge progress of the Chinese bonds market.Combined with the Treasury bond market liquidity,historical changes of the Treasury bond market development in our country is still not complete,the financial function is still incomplete.The liquidity of each divided bond market is not balanced,and the actual characteristics of the bond maturity of different periods are not exactly the same.Treasury market participants,holders of the structure are very different.Finally,the study have found that,since the 18 th National Congress,the Treasury bond market is influenced by national economy and expanding the scale,but compared with the bond market overall development and progress,the development of it is relatively slower.Its liquidity is on the serious shortage,compared to the debt-financed,corporate bonds,and so on,and as the market is divided,the Treasury bond market within the bank,the exchange between the two main market liquidity difference is very obvious,exchange between liquidity index is higher than the inter-bank market,but,after comprehensive weighted between Banks still occupies the dominant position.Bonds maturity varieties,tend to be more diversified in recent years,as more and more near delivery of Treasury bonds,in theory,the future treasure bonds liquidity will increases,but the actual analysis,some of the key period of short-term bonds is higher than short-term liquidity.Term structure of Treasury bonds issued also needs to continue to balance,short-term debt circulation and distribution frequency is quite low compared with the United States.On the trading system,2014-2016,the construction of the national debt market maker system has made great progress,but has yet to mature,still need to continue to improve.The investment structure,the main mechanism of the Treasury bond market investors difference is very big,in addition to the government dominant factor,the insufficient institutions in the development of the capital market is one of the reasons.In addition,the bond market's opening and development of derivatives market,such as Treasury bonds futures will also help in national debt liquidity enhancement.In a short,based on the previous research,combined with the actual data of China's Treasury bond market in the new period,targeted contrast analysis,on the national debt liquidity measurement made some necessary improvements,conclusion are in good agreement with actual market trends.Recommendations and Suggestions,according to the Treasury bond market microstructure factors want to continue with the reform deepening,China's bond market can play a better fiscal and financial functions,the interest rate marketization and RMB internationalization,capital market opening and steady the growth rate of,restructuring to provide more help.