Treasury futures are based on the spot of treasury bonds, and their prices are ultimately determined by the spot market. Moreover, it has strong professionalism and small fluctuation, and the scale of participants in the initial stage of listing is limited. The decline of treasury bonds futures shows that the yield of cash bonds is rising, which shows that the supply of treasury bonds exceeds demand at present and the country wants to issue treasury bonds at a higher cost. So, what does the plunge in treasury bonds futures mean to the stock market?

What does the plunge in treasury bond futures mean to the stock market?

National debt includes insurance, Public Offering of Fund and asset management products of securities companies. Treasury futures plummeted. In addition to holding the main body of national debt, banks as intermediaries will also face risks. Banks and insurance are the weight plates, and the sharp drop in treasury bonds futures will drive down small and medium-sized enterprises. At the same time, if the impact of market funds on the plunge of treasury bonds futures is not reflected in time, it will directly affect the trading volume of the stock market.

National debt is one of the asset allocation of financial products. If something goes wrong locally, we should adjust the capital from other parts to make up for it. Stock is one of the assets. In addition, the stock market is in a period of adjustment, and any trouble will lead to selling.

The listing of treasury bonds futures is essentially a long-term favorable factor for the development of the stock market, which helps to improve the management level of market interest rate risk and enhance the attractiveness of the entire financial market, including the stock market. What needs to be said is that although treasury bond futures are relatively safe products, they cannot be taken lightly. The sharp drop of treasury bond futures has a great impact on the stock market.