Although it has the same unilateral boosting effect on the market as the circulating positive repurchase in closed repurchase, in the process of buyout repurchase, the circulating reverse repurchase will amplify the pressure of shorting, cause the power to help the market fall, and cause short-term fluctuations in the market. But in the long run, buyout repurchase enhances the liquidity of the bond market and greatly improves the pricing efficiency of the bond market, thus making the trading behavior of the bond market more mature and rational. At the same time, due to the existence of cross-market arbitrage, the linkage between banks and exchange markets is obviously strengthened, transactions are more active, spreads are gradually narrowed, and the market yield curve is more reasonable.

It provides more profit opportunities for investors.

Due to the introduction of short selling mechanism in buyout repo, investors can not only make profits when the bond price rises, but also make profits through short selling when the bond price is expected to fall. This is especially important for banks, insurance companies and funds, because bond investment is a very important part of their asset structure. In the process of market decline, it is impossible to avoid price risk by selling all bonds. The introduction of buyout repurchase provides them with effective hedging tools and profit means. In addition, many new profit models derived from buyout repurchase provide investors with huge operating space.

3. Promote the process of bond market innovation.

Because buyout repo is essentially a combination of spot trading and reverse forward trading, with the start of buyout repo, it should be a natural thing to launch treasury bond forward trading, and it is expected that treasury bond futures trading, which is more standardized than forward trading, will come back soon. Therefore, the introduction of buyout repurchase is of great significance to promote the innovation of the national debt market.