The issuing interest rate of 91 day discount treasury bond is 0? Misconception! Bonds | treasury bond bonds | issuance
Guide: Discounted treasury bond has no interest rate, generally called yield.
Author | Chen Yi Journal
On June 9, the Ministry of Finance issued this year's book entry discount treasury bond, with a scale of 50 billion yuan. At noon, some media disclosed the issuance results, which showed that the issuance interest rate of the above-mentioned 91 day treasury bond was 0.0000%. The issue interest rate of treasury bond was 0, which aroused concern.
A bond professional told China First Finance that the above-mentioned treasury bond is a discount bond, which has no coupon rate, and generally does not mention the issuance rate.
![The issuing interest rate of 91 day discount treasury bond is 0? Misconception! Bonds | treasury bond bonds | issuance](https://a5qu.com/upload/images/ff710a0ab54a91f42fc54d95a6064492.jpg)
Wen Laicheng, a professor at the Central University of Finance and Economics, told China First Finance and Economics that discounted treasury bond is issued at a price lower than the face value of the bond, but will be repaid at the face value after maturity. The difference between the issue price and the face value is the interest of the bond. Therefore, there is no interest rate for discounted treasury bond, which is generally called yield.
According to Wind, on June 9, the weighted bid winning yield of 91 day discount treasury bond of the Ministry of Finance was 1.26%, and the full market multiple was 3.41.
The Ministry of Finance has previously disclosed that the current treasury bond is a discount bond with a term of 91 days, which is issued at a discount below the par value. The total face value of the competitive bidding is 50 billion yuan, and additional bidding for Class A members will be conducted. The bond will be tendered on June 9th and interest will begin to accrue on June 12th. The current treasury bond will be repaid at par on September 11, 2023.