Research On The Development Of The US Dollar International Bond Market And Its Influencing Factors

This paper mainly studies the history of the development of the US dollar international bond market,and explores the relevant influencing factors of the development of the US dollar international bond market from both theoretical and empirical aspects.The US dollar international bond market can be divided into the Yankee bond market and the European dollar bond market.From the history of the development of the US dollar international bond market,the appearance of the Yankee bond market was earlier than that of the European dollar bond market.However,with the increasing openness of the global economy,the European dollar bond gradually developed and expanded,and its development speed and scale far exceeded that of the Yankee bond market.The Yankee bond market is mainly influenced by the domestic policy of the United States.The regulation of the early U.S.government restrained its scale.With the deregulation,the Yankee bond began to grow and grow.European dollar bond market is mainly trading in Europe,although not directly controlled by the U.S.government,but its development is closely related to the U.S.domestic monetary policy.The development of the US dollar international bond market is closely related to the internationalization of the US dollar.The US dollar international bond market appears with the internationalization of the US dollar.In the aspect of theoretical research,firstly,this paper studies the relevant theories of issuance cost and investment return of international bonds,and then discusses the relationship between international bond market and currency internationalization.On this basis,drawing on the research methods and ideas of currency internationalization,it summarizes the influencing factors of the development of international bond market,and finds that the main factors affecting the development of international bond market are the economy of one country.Economic strength,monetary inertia effect,currency stability,financial market construction,etc.In the empirical aspect,this paper combines the previous theoretical research and draws on the methods proposed by some scholars to construct the model,and makes an empirical analysis of the influencing factors of the international bond market.The results show that the comprehensive economic strength of the United States is the fundamental factor affecting the development of the international bond market of the United States dollar.The appreciation or depreciation of the United States dollar has a significant impact on the development of the international bond market of the United States dollar.Historic inertia also has a significant role in promoting the development of the US dollar international bond market,while the improvement of financial market construction has a slightly weaker impact on it.The reason may be that the main trading venues of the US dollar international bond market are not confined to the United States.In addition to the above factors,the birth of the euro and the outbreak of the global financial crisis have had a greater impact on the international bond market of the US dollar.To some extent,the emergence of the euro has reduced the balance of the US dollar international bond market,but the size of the US dollar international bond market is still growing steadily.The outbreak of the global financial crisis has greatly changed the proportion of the US dollar international bond market.The global financial crisis has increased the proportion of the US dollar international bond market.This may be because holding US dollar assets can effectively reduce the overall risk and optimize the allocation.With the progress of RMB internationalization,the development of RMB international bond market has also accelerated.According to the development experience of US dollar international bonds,this paper holds that,firstly,the development of dim sum bond market will have more potential in the future,and its scale will far exceed that of panda bonds;secondly,comprehensive national strength is the fundamental guarantee for a country's currency to become an international bond financing currency,and whether RMB international bonds can continue to develop rapidly in the future will ultimately depend on China's economic strength.Third,the improvement of financial market operation mechanism and the development of international bonds complement each other.From the perspective of China's situation,there are still many problems in the current financial market system.Improving these problems is one of the necessary conditions for the development of RMB international bonds.