The Treasury Bond Index is an index composed of all fixed expected annual interest rate Treasury bonds listed on the exchange as samples, weighted according to the issuance volume of Treasury bonds. The following is a detailed introduction for you!

What does the Treasury Bond Index mean?

The Treasury Bond Index is a sample of all fixed-rate Treasury bonds listed on the exchange, weighted by the issuance of Treasury bonds. Reflecting the overall condition of the bond market, when the government bond index rises, it means that the bond market is developing well. At the same time, a rise in the bond index also means that interest rates are falling and liquidity is loose.

For individual investors, the rise in the treasury bond index will cause the bond market interest rates to fall, the treasury bond interest rates will fall, and the expected returns of investors from investing in treasury bonds will also decrease.

The relationship between the government bond index and the government bond yield

There is a negative correlation between the government bond price and the government bond yield. That is to say, the higher the government bond price, the lower the yield will be.

Treasury bond yields and prices generally have a negative correlation. That is, when Treasury bond prices rise, yields will fall; and when Treasury bond prices fall, yields will rise.

The reason why the two have such a negative correlation is actually related to the supply and demand situation in the market. Because rising bond prices often indicate that there are more people buying them. In order to reduce costs, the interest rates on government bonds will naturally have to fall. On the other hand, a fall in the price of government bonds means that fewer people are buying them and the market is oversupplied. In order to increase the attractiveness of the product, interest rates will naturally be raised.

Of course, a rise in the price of government bonds is likely to stop investors from buying them. When fewer people buy, the supply increases, and the supply may turn from a shortage to an oversupply, and interest rates may rise again to attract investors to buy.

What is the relationship between debt base and treasury bond index?

Bond base and treasury bond index basically maintain a positive correlation. When the government bond index rises, the bond base will generally rise; conversely, when the government bond index falls, the bond base will generally retreat.

Treasury Bond Index: A sample of all fixed-rate treasury bonds listed on the exchange, weighted according to the issuance volume of treasury bonds. The purpose is to reflect the overall changes in the bond market.

Debt Fund: Bond fund, also known as bond fund, refers to a fund that specializes in investing in bonds. It seeks relatively stable returns by pooling the funds of many investors and investing in bonds in a portfolio.