We all know that treasury bonds are bonds issued by the country based on its credit. So, what is treasury bond reverse repurchase?

How to do it?

We have prepared relevant content for your reference.

What is Treasury bond reverse repurchase?

Treasury bond reverse repurchase means that after an investor purchases a treasury bond, the bank will give it a certificate of the treasury bond. The investor can mortgage the treasury bond, borrow money from others under the supervision of the stock exchange, and repay the principal and interest upon maturity.

The party that provides the borrowing is to conduct reverse repurchases of government bonds and lend its own funds through the government bond repurchase market in order to obtain fixed interest income.

The entire treasury bond reverse repurchase transaction requires the participation of three parties: 1. The party that needs to borrow money (financing party): the party that holds treasury bonds and needs cash is the repurchase party.

2. The party that lends money (securities lender): lends funds, reverse repurchase party.

3. Supervisors: Shanghai Stock Exchange, Shenzhen Stock Exchange.

How to do it?

1. First open a stock account. Not only reverse repurchase of government bonds, but also buying stocks, exchange-traded funds, convertible bonds, etc. all require a stock account.

Generally, securities companies will automatically enable treasury bond reverse repurchase transactions by default, but credit accounts do not currently support treasury bond reverse repurchase.

2. Log in to the account and recharge the account. As for how much to deposit, it depends on your personal funds.

3. Select "Sell" in the securities trading software, fill in the reverse repurchase transaction code, fill in the selling price and quantity, and click Sell.

Everyone chooses to buy in the Shenzhen Stock Exchange or the Shanghai Stock Exchange, the type of reverse repurchase, and the period based on their personal circumstances.

Usually there are 1-day period, 7-day period, 28-day period, etc. You can choose up to 182-day period.

Trading hours: 9:30-11:30 and 13:00-15:30 on each trading day. Trading is not supported at other times.

In addition, trading cannot be conducted when the market is closed on statutory holidays.

Transaction threshold: The reverse repurchase threshold of the Shanghai and Shenzhen stock markets is the same. The minimum investment is 1,000 yuan, and the purchase is declared in an integral multiple of 1,000. The minimum price change is 0.005 yuan.