1, as the delivery target of futures contract: the cheapest delivery bond is the delivery target of treasury bond futures contract, which determines the theoretical price of treasury bond futures. In this way, the cheapest delivery bonds provide an effective price discovery mechanism for the futures market and the spot market.

2. Reduce delivery costs: Choosing the cheapest delivery bonds as delivery targets will help reduce delivery costs and improve market efficiency. This is mainly because the cheapest delivery bonds are generally lower in price, so the delivery cost of using such bonds is relatively low.

3. Improve market liquidity: As the cheapest delivery bond has a lower price, more investors and traders may choose this bond for trading, thus improving market liquidity. This liquidity can improve the efficiency of the market and reduce transaction costs.