news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

source: minsheng bank research

the central bank recently announced two "treasury bond operations", namely, the "open market business transaction announcement [2024] no. 173" on august 29, which announced "the purchase of 400 billion yuan of special treasury bonds from primary dealers in open market operations"; and the "treasury bond trading business announcement [2024] no. 1" on august 30, which announced "in august 2024, the people's bank of china conducted open market treasury bond trading operations, buying short-term treasury bonds and selling long-term treasury bonds from some primary dealers in open market operations, with a net purchase of bonds worth 100 billion yuan for the whole month". among them,the special treasury bonds purchased on august 29 were to follow up the 7-year 400 billion yuan special treasury bonds issued on august 29, 2017. the open market treasury bond trading on august 30 was the first operation after the announcement of "borrowing and selling treasury bonds" on july 1 this year.

1. the ins and outs of the central bank’s purchase of special government bonds

the special treasury bonds purchased by the central bank on august 29 were the special treasury bonds (phase i) and (phase ii) due in 2024, which were announced to have been issued in the treasury bond business announcement no. 135 of 2024 on the same day. the two treasury bonds have a term of 10 years and 15 years respectively, with a face value of 300 billion yuan and 100 billion yuan respectively, and a coupon rate of 2.17% and 2.25% respectively. the earliest can be traced back to the 1.55 trillion yuan special treasury bonds issued by the ministry of finance in 2007 to support the capital required for the establishment of china investment corporation.

in 2007, the ministry of finance issued 8 special bonds worth 1.55 trillion yuan. the funds raised were used to purchase foreign exchange of equivalent value from the central bank and to establish china investment corporation. the first and seventh phases were private placements, totaling 1.35 trillion yuan, and the remaining six phases, about 200 billion yuan, were publicly issued. the private placement of 1.35 trillion yuan of special bonds was purchased by the agricultural bank of china, which had not yet been listed, and then the central bank purchased all of them from the agricultural bank of china in the secondary market.