Will it be safe to buy government bonds?-Investment analysis-Stock market stocks

The so-called national debt is a bond borrowed by the state from individuals or enterprises, that is, national debt, which is a bond issued by the state to raise funds. Promise to pay interest on schedule according to the agreed conditions within a certain period of time, and return the principal at maturity. Will you lose money by buying government bonds?

National debt risk

National debt is a bond issued to the society based on national credit. It is very safe to repay the principal and interest at maturity, and there is basically no risk. If investors hold the maturing national debt, they will not lose money. Its income depends on its purchase amount, maturity of national debt and expected rate of return. Generally speaking, the expected yield of long-term national debt is higher.

However, if investors withdraw the bonds before the maturity, they will be charged a certain handling fee. When expenses exceed income, there will be losses.

For example, if the voucher-type treasury bonds are cashed in advance and held for less than half a year, no interest will be charged, and the amount of 1% will be charged as a handling fee.

In addition, those who withdraw more than half a year in advance will be deducted certain interest: those who hold certified government bonds for more than half a year but less than two years will be deducted 6 months' interest; If you hold certified bonds for more than 2 years and less than 3 years, you will be deducted 3 months' interest; If you hold certified government bonds for more than 3 years and less than 5 years, you will be deducted 2 months' interest.

What are the benefits of buying government bonds?

1, extremely high security. The issuer of national debt is the country, which is guaranteed by national credit, and losses will only occur in the case of national bankruptcy;

2. There are many national debt sales outlets, which are convenient to purchase and cash, and the procedures are simple;

3. The interest risk is small. The advance cash will bear interest according to the holding period and the corresponding interest rate, and the interest rate of each grade is higher than or equal to the bank deposit rate in the same period. There is no risk in withdrawing time savings deposits in advance, and interest can only be calculated in advance.

Reverse repurchase techniques for purchasing government bonds

1, choose to buy between 9: 30 am and10: 00 am on the trading day, during which the interest rate is relatively high. If you buy after 14:00 on the trading day, the interest rate will be lower;

2. The reverse repurchase rate of national debt is the highest every Thursday. Due to the actual number of days occupied, the interest rate is higher than usual two days before the holiday, so you can buy it at this time;

3. From a month or a quarter, the interest rate of reverse repurchase will be higher than usual at this time, which is the same as the high income on Thursday, so you can buy it at the end of each month or the end of the season.

What are the conditions for buying government bonds?

There is no requirement to buy government bonds, as long as investors have bank cards. The issuance date of certificate-based national debt and electronic national debt is fixed. The purchase time is 10 days per month, that is, 10 days per month. Investors can go directly to the bank to buy. If the national debt is sold in the current month, investors can only wait for the next national debt or buy book-entry national debt in the bank.

Generally speaking, there are two ways to pay interest on national debt: one is to pay interest regularly; The other is that interest and principal are settled together. Regular interest payment means paying interest due every year and continuing to invest the principal; Interest and principal and interest refer to one-time repayment of principal and interest after 3 or 5 years. The national debt will indicate the maturity date, that is, Japan and interest can be received together.

Warm reminder: Although the risk of national debt is very low, we should also invest cautiously. After all, all investments will be risky, and it is still necessary to focus on protection.