Many investors thought that special bonds would be issued in July or August, but they didnt expect to start so soon, said the Securities researcher to the economic observer. Since last night, we have received phone calls from the buyers. The main problem is how much pressure will the market undertake and how tight will the capital be? Will the central bank cut its reserve or interest rate to hedge? The Securities researcher told reporters that the issuance of special treasury bonds exceeded expectations, and the market had expected that it might be targeted issuance. In addition, the issuance time and pace are beyond expectations, the central banks hedging policy is not obvious in the near future, and the market expects that the supply of short-term special treasury bonds is too large, which will have a greater impact on liquidity.
On June 18, the peoples Bank of China carried out 7-day and 14 day reverse repo operations with a total of 120 billion yuan through interest rate bidding. Among them, the 14 day term operation was carried out for the first time since February 10, with the interest rate reduced by 20 basis points. On that day, 80 billion yuan of reverse repo expired, and the central bank realized a net investment of 40 billion yuan.
A financial market person told reporters that the issuance of special treasury bonds will definitely have an impact on the financial market. Therefore, the central bank must provide liquidity to prevent obvious shocks. For example, special treasury bonds are issued in batches. The central bank can supplement liquidity with the pace of issuance, and provide liquidity to commercial banks by means of such tools as standard reduction or interest rate reduction, discount, MLF, reverse repurchase, etc. The reduction of the standard increases the available funds of commercial banks. Other tools are the funds that banks pay directly to commercial banks. The introduction of commercial banks needs to pay interest. From the point of view of commercial banks, they prefer to reduce the standard and have no interest burden. .
According to the name of the special national debt for anti epidemic, the purpose of the issuance is to raise additional financial funds to invest in the relevant fields of the prevention and control of the new crown epidemic, the above-mentioned researchers told reporters. From the perspective of investors, the higher the yield is, the better it will be. Because anti epidemic special national debt has national credit endorsement, it can be said that it has both security and high yield. If we look at the efficiency of financial fund-raising, considering the current situation of CPI gradually falling and PPI is still in the negative range, the annual reduction index should be around 1% or slightly higher.
According to the Ministry of finances website, on the afternoon of June 15, the Ministry of Finance held a video conference on the issuance of special anti epidemic bonds. Xu Hongcai, a member of the Party group and vice minister of the Ministry, attended the meeting to mobilize and deploy the issuance of special national bonds for anti epidemic. In his speech, Vice Minister Xu Hongcai stressed the importance of issuing special anti epidemic national bonds, introduced the main issuing arrangements and clarified the next work requirements. Members of the bookkeeping bond underwriting group from 2018 to 2020 will attend the meeting via video.
On June 17, the Ministry of Finance released the news that the relevant person in charge of the Treasury Department of the Ministry of Finance accepted an interview with reporters on the issue of special anti epidemic bonds. The Ministry of finance put forward the term varieties of special anti epidemic treasury bonds. On the basis of matching the use cycle of financial funds, it fully considered the needs of the construction of the Treasury bond yield curve, with the 10-year period as the main period and the 5-year and 7-year period appropriately matched, so as to further improve the effectiveness of the key points on the Treasury bond yield curve. Different from the savings bonds sold only to individual investors, the special anti epidemic bonds are bookkeeping bonds, with the interest rate determined by the bidding of members of the bond underwriting group and going with the market. At present, the yields of 5-year, 7-year and 10-year Treasury bonds are about 2.5%, 2.8% and 2.8%.
A researcher from a securities firm told reporters that compared with the yield of the same period of last year, the yield of special treasury bonds is relatively low, but it is a little higher than that of the previous period. Two months ago, the yield was a little more than 2.5%.
The Ministry of Finance proposed that this years 1 trillion yuan of special anti epidemic treasury bonds will be issued in a market-oriented manner, all of which will be open to public bidding by members of the bookkeeping underwriting group of treasury bonds. Like the general book entry treasury bonds, the anti epidemic special treasury bonds are not only listed and circulated in the inter-bank bond market, but also listed and circulated in the exchange market and the counter market of commercial banks. Individual investors can open accounts in the exchange market and the over-the-counter market of commercial banks to participate in the distribution and trading of special anti epidemic treasury bonds. For details, they can inquire about the trading regulations of relevant places, or consult with the industrial and Commercial Bank of China, Agricultural Bank of China, construction bank, China Merchants Bank, Bank of Beijing, Bank of Nanjing and other banks that have opened bookkeeping treasury bond over-the-counter business. It should be noted that the payment account of special anti epidemic national bonds published in the issuance notice only accepts the underwriting payment of bookkeeping underwriting group of national bonds, and does not accept individual transfer. At the same time, the special anti epidemic bonds are the same as the general book entry bonds, which can not be redeemed in advance and can be traded in the secondary market. The trading price fluctuates according to the market situation, and the profit and loss are borne by the investors.
That is to say, just like the national debt, special national debt only accepts the quotation of institutions. If an individual wants to buy it, he should go to the national debt sales counter of the bank to buy it.
According to the information released by the Ministry of finance, on June 18, two issues of 100 billion special treasury bonds were issued, followed by 10-year special treasury bonds of 70 billion yuan.
Some places have begun to disclose the relevant information about the declaration of special national debts for epidemic prevention. On June 4, the official website of the development and Reform Commission of Xiantao City, Hubei Province, said that 76 special anti epidemic national debt projects had been declared, 76 projects had passed the preliminary examination at the provincial level, with a total investment of 15.56 billion yuan and a planned investment of 3.78 billion yuan. The preliminary work was complete.
A person in charge of government investment and financing consulting also told reporters that he has helped many local governments to apply for special treasury bond projects, generally referring to the application for four major areas, namely medical treatment, emergency response, infrastructure and new infrastructure. In fact, the use of special treasury bond funds in projects is similar to that in the central budget. Some projects will also declare special bonds when declaring special bonds. Because the funds of special national debt projects cant cover all the funds, they should be used as subsidy funds. The head of the consultation told reporters. At present, some localities are actively applying for the special national debt project of anti epidemic, and the funds are invested in six fields, including public health facilities, construction of emergency material reserve system, municipal facilities, urban environmental infrastructure, reconstruction of old urban communities, and transportation infrastructure. Source: Yang Qian, editor in charge of Economic Observer_ NF4425
A person in charge of government investment and financing consulting also told reporters that he has helped many local governments to apply for special treasury bond projects, generally referring to the application for four major areas, namely medical treatment, emergency response, infrastructure and new infrastructure. In fact, the use of special treasury bond funds in projects is similar to that in the central budget. Some projects will also declare special bonds when declaring special bonds. Because the funds of special national debt projects cant cover all the funds, they should be used as subsidy funds. The head of the consultation told reporters.