1.

High security. Because the national debt is issued by the central government and is a symbol of a country's strength, the issuer has the highest credit status in a country and the risk is generally small, so investors are relieved.

2.

Strong liquidity and easy to realize. Due to the high credit status of the government, the issuance of government bonds is large and easy, which has created a very developed secondary market and objectively brought convenience to the free trading and transfer of government bonds. Treasury bonds are more liquid and easier to realize.

3.

You can enjoy a lot of tax-free treatment. Most countries stipulate that investors who buy government bonds can enjoy more tax relief than investors who buy other income securities. China began to levy 20% interest tax from June 1999 1 1, but all kinds of bond transactions still enjoy tax exemption policy.

4.

It can meet the needs of different groups, financial institutions and individuals. The typical performance is that national debt is widely used for mortgage and guarantee. In many transactions, national debt can be used as a guarantee for cashless payment, and in addition, it can also be used to obtain loans.

5.

Low interest rates. Because the repayment of principal and interest of national debt is guaranteed by the state, among all bonds, the credit degree is the highest, the investment risk is the smallest, and the fixed interest rate is lower than other bonds.

6.

This is a bargaining chip for the government to balance the market currency. The central bank can effectively expand and contract the amount of money in the market by buying and selling treasury bonds in the open market, and then realize the adjustment of macro demand.

Types of national debt:

1.

According to the issuance period, public debt can be divided into short-term public debt, medium-term public debt and long-term public debt.

2.

According to the issuing area, public bonds can be divided into national bonds and foreign bonds.

3.

According to whether it can circulate freely, public bonds can be divided into listed bonds and unlisted bonds.

4.

According to the form of borrowing, public bonds can be divided into contract loans and issuing public bonds.

5.

Other classification methods. It can be divided into central government bonds and local government bonds according to the issuer; According to the unit of measurement of public debt, it can be divided into physical public debt and monetary public debt; According to the interest status, it can be divided into interest-bearing bonds and prize-winning bonds; According to the purpose of public debt, it can be divided into productive public debt and unproductive public debt.