the interest rate of bonds or treasury bonds issued shall be determined by the bidder after the fixed term is set.

For example, if the country wants to issue a certain central bank bill, and the total issuance scale is determined, for example, 5 billion yuan will be issued, the central bank will set a range according to the market interest rate level, for example, 2%-4%, then in the inter-bank market (which is full of large institutions such as banks, insurance companies, fund companies and brokers), all institutions will bid. For example, I am the Bank of China, and I guarantee the price for the central bank. If the interest rate is 4%, I will buy 5 billion, if it is 3%, I will buy 3 billion, and so on. . Every institution reports this way. Finally, according to the insured price, the central bank determines an interest rate, such as 2.5%, and then gives quotas to various institutions, giving you hundreds of millions and giving him hundreds of millions. This interest rate is actually obtained by competitive bidding, which reflects the supply and demand of funds in the market. In China, this interest rate usually reflects the future trend of interest rates and is also regarded as part of the benchmark interest rate.

Only the electronic book-entry treasury bonds for ordinary investors are issued at the interest rate determined by the central bank, and this interest rate is actually determined by other benchmark interest rates, which accounts for a very small proportion in the bond market.