On the 13th, the Ministry of Finance announced the relevant arrangements for the issuance of general treasury bonds and ultra-long-term special treasury bonds in 2024. According to the arrangement, the maturity of ultra-long-term special treasury bonds includes 20-year, 30-year and 50-year maturity, and the interest payment method is semi-annual, and the first issuance time is May 17. What are ultra-long-term special government bonds? What role does it play? What is the issuance arrangement? Can an individual buy it? Where to buy? Let's take a look↓
What are ultra-long-term special government bonds?
A: Ultra-long-term special treasury bonds, which contain three key words: ultra-long-term, special, and treasury bonds.
Ultra-long-term, refers to the term. In the bond market, interest rate bonds with a maturity of more than 10 years are generally considered to be "ultra-long-term bonds". Compared with ordinary government bonds, ultra-long-term bonds can alleviate the pressure of debt repayment in the short and medium term, exchanging time for space.
In particular, it is talking about the use of funds. It is a treasury bond issued for a specific target with a clear purpose, and the funds need to be earmarked. According to this year's "Government Work Report", the ultra-long-term special treasury bonds mentioned this time are to systematically solve the problem of funding for the construction 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 capacity building in key areas.
Treasury bonds, a kind of government bonds issued by the state in order to raise financial funds, have the highest creditworthiness and are recognized as the safest investment tools, so they are also very popular with the people.
What is the role of ultra-long-term special government bonds?
A: The arrangement of ultra-long-term special treasury bonds was considered by the CPC Central Committee in light of the overall situation of economic and social development. The investment of ultra-long-term special treasury bonds in major projects is conducive to expanding aggregate demand, improving the efficiency of economic operation, optimizing the supply structure, and forming a large number of high-quality assets.
Specifically, in terms of support areas, the ultra-long-term special treasury bonds will focus on key tasks such as accelerating the realization of high-level scientific and technological self-reliance and self-reliance, promoting the integrated development of urban and rural areas, promoting coordinated regional development, improving the security of food and energy resources, promoting high-quality population development, and comprehensively promoting the construction of a beautiful China.
What is the scale of the issuance of ultra-long-term special treasury bonds?
A: This year's "Government Work Report" mentioned that starting from this year, it is planned to issue ultra-long-term special treasury bonds for several consecutive years, which will be used for the implementation of major national strategies and security capacity building in key areas, and 1 trillion yuan will be issued this year.
What is the distribution arrangement for this round?
A: According to the arrangement, this round of ultra-long-term special treasury bonds will be divided into 20-year, 30-year and 50-year maturity varieties, all of which will pay interest on a semi-annual basis. Among them, the 30-year ultra-long-term special treasury bonds "landed the earliest" and will be issued on May 17; The 20-year ultra-long-term special government bond was first issued on May 24, and the 50-year ultra-long-term special government bond was first issued on June 14.
On May 17, the ultra-long-term special treasury bonds to be issued are 30-year fixed-rate interest-bearing bonds, with a total face value of 40 billion yuan through competitive bidding, and the bidding work shall be carried out in accordance with the "Rules for the Bidding and Issuance of Book-entry Treasury Bonds". Interest will be accrued from May 20, 2024, and interest will be paid semi-annually, with interest payments on May 20 (postponed on holidays) and November 20 of each year, and the principal will be repaid and the last interest will be paid on May 20, 2054.
Can individuals buy it? Where to buy?
A: Ultra-long-term special treasury bonds are book-entry treasury bonds, which can be purchased by individuals and institutions, and can be purchased over the counter of banks, online platforms, and securities markets, and can also be circulated and transferred.
(Source: Chinese government website, original publication)