The inter-bank bond market has become the main part of my country’s bond market. Most book-entry treasury bonds and policy financial bonds are issued and traded on this market. The interbank bond market is a concept relative to the exchange bond market.
Commercial banks and other financial institutions are its main participants. This market is a bulk trading market that adopts a bilateral negotiation transaction model and settlement on a transaction-by-transaction basis. The main types of transactions include treasury bonds, policy financial bonds, central bank bills, short-term financing bonds, corporate bonds and other bonds.
Generally speaking, there are four main forms of transactions in the inter-bank bond market, including spot bond transactions, repurchase transactions, bond forward transactions and bond lending transactions. Among them, bond forward trading has similar connotations to futures. It is a transaction behavior in which the two parties agree to buy and sell the underlying bond at an agreed price and quantity on a certain date in the future. It is a kind of transaction to compensate for the inability of banks, insurance and other institutions to participate in national debt. An innovative interest rate derivatives transaction created by the futures market; bond repurchase transactions and spot bond transactions adopt the model of one party giving money and the other party giving bonds; bond lending transactions are a "bonds-for-bonds" transaction. model.