Short-term interest rate refers to the interest rate of various financial assets with a financing period of less than one year. Also refers to the interest rate in the money market.

The long-term interest rate is the market interest rate for more than one year. Also known as capital market interest rate. Capital market can be roughly divided into long-term securities market and bank credit market. Long-term securities market includes stock market and bond market. In the long-term securities market, the long-term interest rate is the interest rate of securities with a term exceeding 1 year. In the bank credit market, the long-term interest rate usually refers to the loan interest rate above 1 year. Long-term interest rate has a long term and great uncertainty.

2. Different characteristics

Long-term interest rates are different from short-term interest rates because of long-term, more uncertainty and increased risks.

Changes in short-term interest rates. The yield has risen sharply. For example, in the primary market, The Export-Import Bank of China issued 10 billion financial bonds on June 6, with a fixed interest rate and a term of 9 months. The issue interest rate is 3.7 1%, which reaches the upper limit of the bidding interest rate range, 26 basis points higher than the secondary market yield of 3.45%, and the bidding multiple is only 65438+.

3. The determination of interest rate is different.

The complete expectation of future short-term interest rate is the basis for the formation of long-term interest rate. If the short-term interest rate is expected to rise in the future, the long-term interest rate is higher than the short-term interest rate. or vice versa, Dallas to the auditorium

Market segmentation theory holds that both investors and borrowers have term preference, and different term demand divides the financial market, and each has different supply and demand conditions. Long-term interest rate and short-term interest rate are determined by their own market conditions, that is, the substitution of securities with different maturities is limited, not a complete substitution relationship. In fact, long-term interest rates are generally higher than short-term interest rates.