Investment varieties of government bond funds
1, treasury bills
National debt is a kind of government bond issued by the national financial department to make up for the imbalance of national treasury revenue and expenditure. The general term is less than one year, and the credit rating is similar to that of national debt, which is very safe.
2. Treasury promissory notes
Treasury bill promissory note is also a kind of government bond, which means that the drawer unconditionally pays a certain amount to the payee on the maturity date. The national debt promissory note is equivalent to the national white note, and its security is relatively high.
3. Government bonds
Government bonds are debt certificates that the government promises to repay the principal and interest within a certain period of time in order to raise funds, including central government bonds, local government bonds and government-guaranteed bonds. National debt has the highest credit rating among all bonds, because the government bears the responsibility of repaying principal and interest, which reflects the national credit and its security is greatly guaranteed.
The rise and fall of national debt funds are most affected by interest rates. Because most of the national debt funds invest in national debt, the credit risk is very low, and interest rate is the main factor affecting bond prices. When the market interest rate rises and the bond price falls, the market of national debt funds is not good; When the market interest rate falls, the bond price will rise, and the market of government bond funds will be optimistic.