Will you buy it? The 30-year interest rate is 2.57%. Ultra-long-term special treasury bonds are issued today.

On May 17, the 2024 ultra-long-term special treasury bonds were officially launched, with a term of 30 years and a total amount of 40 billion yuan. Interest is paid every six months and the coupon rate is 2.57%.

What are ultra-long-term special treasury bonds? Is it the same thing as savings bonds that are “sold out as soon as they are released”? Can I buy it personally?

Let’s break this word into three key words.

First, ultra-long-term bonds. In the bond market, interest rate bonds with a bond issuance period of more than 10 years are generally considered "ultra-long-term bonds". The main maturities are 15 years, 20 years, 30 years and 50 years;

The second is treasury bonds, which are a type of government bonds issued by the state to raise fiscal funds. In the treasury bond market, there are mainly 30-year and 50-year bonds. Among them, the issuance scale is larger and the one that attracts more market attention is the 30-year super bond. long treasury bonds;

The third is special, which refers to the use of funds and refers to government bonds issued for specific goals and with clear purposes. According to this year's "Government Work Report", the ultra-long-term special treasury bonds mentioned this time are to systematically solve the funding problems of some major projects in the process of building a strong country and national rejuvenation, and are specially used for the implementation of major national strategies and security capabilities in key areas. construction.

In fact, special treasury bonds and ultra-long-term treasury bonds have been issued many times in our country’s history.

Our country has issued new special government bonds three times in 1998, 2007 and 2020. Among them, 270 billion yuan of special treasury bonds were issued to the four major banks in 1998. The central bank cooperated with the reduction of the deposit reserve ratio to supplement the capital adequacy ratio of the four major banks for a period of 30 years; in 2007, 1.55 trillion yuan of special treasury bonds were issued to purchase foreign exchange. The principal of China Investment will be replenished, with a term of 10-15 years; in 2020, 1 trillion yuan of special government bonds will be issued for public health and anti-epidemic expenditures, with a term of 10 years.

Are ultra-long-term special Treasury bonds and savings bonds the same thing?

no. Currently, the treasury bonds issued by our country can be divided into savings treasury bonds and book-entry treasury bonds. The ones that have recently caused heated discussions about "queuing up at the bank to subscribe and online quotas disappearing in seconds" are savings treasury bonds, while this round of ultra-long-term special treasury bonds is Book-entry Treasury bonds. The two are different in "who can buy, where to buy, and how to buy and sell".

Who can buy it? Savings treasury bonds are mainly aimed at individual investors, especially those seeking stable, long-term returns, and are not open to large institutional investors; book-entry treasury bonds can be purchased by both individuals and institutions.

Where to buy? Savings treasury bonds are mainly purchased through bank outlets and designated online banking channels. Investors need to go to the bank or complete the transaction through online banking; the transaction method of book-entry treasury bonds is more flexible. According to the list of members of the book-entry treasury bond underwriting syndicate, investors can either go to the bank or complete the transaction through online banking. Trading can also be purchased through securities companies that carry out bond brokerage business on the stock exchange, and can be bought and sold in real time according to market conditions.

How to buy and sell? There is also a big difference in liquidity between the two. Savings treasury bonds cannot be circulated and transferred, but in order to meet the liquidity needs of investors, an early redemption mechanism is provided, which usually requires payment of a certain handling fee; book-entry treasury bonds have high liquidity Investors can freely buy and sell in the secondary market, the price will follow the market trend, and the actual interest rate will also fluctuate accordingly.

In January this year, the Ministry of Finance issued the "Announcement on the Announcement of the List of Members of the Treasury Underwriting Syndicate for 2024-2026", and together with the People's Bank of China and the China Securities Regulatory Commission, 56 institutions including the Industrial and Commercial Bank of China Co., Ltd. were identified as book-keeping entities for the period 2024-2026. Member of the treasury bond underwriting syndicate.

List of members of the book-entry treasury bond underwriting syndicate from 2024 to 2026.

Specific to this round of ultra-long-term special treasury bonds, not all of the above-mentioned 56 institutions have opened purchase channels to individual investors.

The customer service manager of the Agricultural Bank of China said that the Agricultural Bank of China has no plans to include this issue of ultra-long-term special treasury bonds in the "Bond Market Treasure" for sale.

Bank of Communications and China Construction Bank stated that individuals and small and medium-sized institutional investors can subscribe over the counter at business outlets during the distribution period, or they can subscribe for this bond through online banking, mobile banking and other channels.

As for whether you should buy it or not, it mainly depends on your personal investment experience and risk tolerance.

Industry insiders said that ultra-long-term special treasury bonds are different from deposits, and interest rates will fluctuate with the secondary market. If liquidity is tight, an increase in the supply of government bonds will cause interest rates to rise, and the price of the originally issued government bonds may fall, causing the government bonds in hand to "depreciate." Of course the opposite may also be true.

The "MoF releases Q&A on individual investors purchasing treasury bonds" released today by the Ministry of Finance also provides reference. The trading price of book-entry treasury bonds fluctuates with market conditions. After investors buy it, they may gain trading profits due to price increases, or they may face the risk of losses due to price drops. Therefore, individual investors in book-entry treasury bonds whose purpose is not to hold to maturity but to make profits through trading should have certain investment experience and risk-taking ability.

What does the market think of this round of ultra-long-term special government bonds?

Li Nan, associate professor at Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, said that the issuance of ultra-long-term treasury bonds is based on some objective conditions currently existing in our country: First, during the period when the economic development model is shifting to high-quality development, some regions and fields in our country have many long-term problems. secondly, some local governments raised market-oriented funds in the past and formed a large amount of urban investment bonds; thirdly, banks need to find new channels for using funds.

The issuance of ultra-long-term special treasury bonds this time can solve the current background of resolving the urban investment debt problem, solve the funding sources of key projects in some key areas, and also build more funding channels for banks.

Judging from the specific issuance arrangements, in the entire 1 trillion yuan ultra-long-term special treasury bond issuance arrangement, the treasury bond issuance periods are 20 years, 30 years and 50 years respectively, and the number of issuances is 7, 12 and 3 times respectively.

Guosen Securities’ research report pointed out that from the perspective of specific arrangements, the issuance rhythm of special government bonds is relatively balanced. On the one hand, it will help to stabilize the impact of government bond issuance on funds. On the other hand, it will also ease the restrictions on the issuance rhythm caused by insufficient project reserves.