In the eyes of many investors, bonds can only be long. In fact, we can also short bonds through bond derivatives to earn the benefits of falling bond prices. So what is the goal of shorting bonds?

What is the goal of shorting bonds?

Shorting bonds has two main objectives. One is the treasury bond futures listed on China Financial Futures Exchange, and the other is the bond ETF listed by short selling through margin financing and securities lending.

1 short treasury bond futures. Treasury bond futures, as futures, have the ways of selling and opening positions. After selling and opening positions, you can get short-selling gains when the price of government bonds falls, and then close your positions.

2 short-term treasury bonds ETF. Borrow the ETF share of government bonds through securities lending business, then sell the share, then buy the ETF of government bonds, and return it to brokers after the price drops, so you can get short-selling income.

The main factor affecting the price trend of the whole bond market is the market interest rate. If you want to short for a long time, then the premise should be that the market interest rate continues to rise. For a single bond, we should also pay attention to credit risk. Generally speaking, the credit risk of national debt is the lowest.

There are high thresholds for shorting treasury bond options or shorting treasury bond ETFs. The national debt futures account and the opening of margin financing and securities lending business have a capital threshold of 500,000 yuan.