Learn the little knowledge of wealth in seconds: Treasury bonds

Treasury bonds are a kind of creditor-debtor relationship formed by the state relying on its own credit and following the usual principles of debt to raise funds from the society. It belongs to the category of bonds.

In layman's terms, it is like an "IOU" given by the state after borrowing money from the people. This "IOU" will determine the face value (that is, how much to borrow), the interest on the loan, and the repayment period in advance.

Because the issuance of treasury bonds is supported by the national credit, and the national credit is guaranteed by the country's reputation, taxation rights, and currency issuance rights, treasury bonds are regarded as one of the safest investment tools.

The risks of treasury bond investment mainly include the following aspects:

- Interest rate risk: changes in market interest rates will affect the price of treasury bonds. If interest rates rise, the price of treasury bonds may fall, resulting in losses for investors.

- Inflation risk: Inflation will lead to currency depreciation, thereby affecting the actual yield of treasury bonds. If the inflation rate is higher than the yield of treasury bonds, investors' actual returns will be lost.

- Liquidity risk: The liquidity of government bonds is relatively poor. If investors need to cash out in the short term, they may face certain difficulties.

- Credit risk: Although government bonds are generally considered to be safer investment tools, in some cases, such as when the country's credit rating declines or a debt crisis occurs, the credit risk of government bonds will also increase.

Of course, risk and return are usually proportional. Basically, the safest government bonds have relatively low interest rates. Among various interest rates, the government bond interest rate is at the bottom and also serves as a benchmark interest rate.

Therefore, government bonds are also an investment product that conservative investors particularly like.

So how do ordinary investors buy government bonds?

In fact, government bonds can be divided into three types: bearer, voucher, and book-entry.

Among them, bearer government bonds are more convenient to buy:

During the issuance period, you can go to the outlets of major banks and securities companies near your home that sell bearer government bonds to buy them.