The benchmark interest rate is a universal reference interest rate in the financial market, and other interest rate levels or financial asset prices can be determined according to this benchmark interest rate level. Benchmark interest rate is one of the important prerequisites for interest rate marketization. Under the condition of interest rate marketization, financiers need a universally recognized benchmark interest rate level as a reference to measure financing costs, investors calculate investment returns and management's macro-control. Therefore, in a sense, the benchmark interest rate is the core of the formation of interest rate marketization mechanism.

The benchmark interest rate must have the following basic characteristics:

(1) marketization. Obviously, the benchmark interest rate must be determined by the relationship between market supply and demand, which not only reflects the actual market supply and demand, but also reflects the market's expectations for the future;

(2) foundation. The benchmark interest rate plays a fundamental role in the interest rate system and the price system of financial products, and has a strong correlation with the interest rates of other financial markets or the prices of financial assets.

(3) transitivity. The market signal reflected by the benchmark interest rate, or the regulatory signal sent by the central bank through the benchmark interest rate, can be effectively transmitted to other financial markets and financial product prices.

Optimal interest rate

China's benchmark interest rate-the national debt interest rate (specifically, the yield of the national debt secondary market) is the most suitable as the benchmark interest rate.

From the general international experience, only the interest rate of financial products with reasonable structure, high reputation and strong liquidity can be used as the benchmark interest rate. Among several interest rates that have been marketized in China, the national debt interest rate (specifically, the yield of the national debt secondary market) is the most suitable as the benchmark interest rate.

First, the national debt has the highest reputation. National debt is the debt issued by the central government with its tax right as the guarantee. As long as there is no political crisis, there is almost no risk in national debt. Therefore, national debt has the highest reputation and the lowest risk among all financial products, and is known as "Phnom Penh bond". No matter in investment practice or theoretical analysis, we should choose the risk-free interest rate, and the non-national debt interest rate is none other than it.

Second, the national debt market is the best combination of China's fiscal policy and monetary policy. The national debt entering the circulation market has become a financial product spanning the capital market and the money market, which has a strong correlation with various financial products. Therefore, choosing the national debt interest rate as the benchmark interest rate to meet the basic requirements of the benchmark interest rate can effectively transmit market signals and regulatory signals.

Third, the continuous expansion of the issuance scale of national debt, the marketization of issuance methods and the diversification of the term structure of national debt have made breakthroughs in quality and quantity; At the same time, with the formation of the inter-bank bond market, the transaction scale of the secondary market of national debt is also expanding, and the liquidity of national debt is obviously enhanced. With the development of the national debt market, the market influence of the national debt interest rate is rising. The secondary market yield of national debt will be considered in the bidding of financial institutions and investment decisions of ordinary investors in the national debt issuance market. The interest rate of national debt naturally plays the role of benchmark interest rate.