business
Short-term debt certificates issued by banks with excess reserves to commercial banks are essentially central bank bonds. The reason why it is called "central bank bill" is to highlight its short-term characteristics (from the perspective of issued central bank bills, the shortest term is 3 months, and the longest is only 1 year).
The interest rate of central bank bills is the interest rate of central bank bonds. Can the central bank affect the capital cost of economic entities by adjusting the interest rate of central bank bills? And then affect asset investment and macro-economy.
The lower interest rate of central bank bills means that the amount of money returned by the central bank through open market operations is reduced. At present, with high foreign exchange reserves and high foreign exchange pressure, the central bank may adjust the position of market funds by raising the deposit reserve ratio and increase the return of funds.
Interest rate bidding refers to the bidding of qualified underwriters by the Ministry of Finance. After winning the bid, the bidder can be regarded as an investment purchase and sold to the society at a certain price.
According to the nature, the bidding methods in the tender issuance can be divided into the following types:
Competitive bidding and non-competitive bidding
Bidding means that the subscriber puts forward the price or interest rate that he is willing to accept according to his own judgment, and the number of subscriptions to bid. In the tender issuance, the issuer determines the winning bidder according to the order of price from high to low or interest rate from low to high, that is, the lowest price (or the highest interest rate) among the winning bidders is used as the winning price, and the predetermined issuance quantity is completed through bidding. Usually, the bidding method is competitive bidding, also called multi-price bidding. Non-competitive bidding means that the subscriber only declares the number of securities subscribed, and the issuer sells them at the average price of the highest price and the lowest price in competitive bidding on the same day. This bidding method is only allowed to be used by subscribers with a small number of subscriptions.
Price bidding and interest rate bidding
After the subscriber's interest rate is determined, bidding refers to the issue price proposed by the subscriber according to the interest rate and face price when the bond interest rate has been determined. Until the predetermined number is completed. The publisher decides the winning bidder from high to low until the predetermined number is completed. By the subscriber according to the interest rate and the par price put forward the issue price for bidding. Interest rate bidding is a method for subscribers to express interest rate (that is, rate of return) by percentage.
Traditional way and Dutch way
The traditional way is that the winning bidder obtains bonds at their respective subscription prices or interest rates, so that the winning bidder who issues the same bond accepts different issuance conditions. The issuer sells at the average price of the highest price and the lowest price of the day. The cost of winning the bid directly depends on the bidding skill, which is also called multi-price bidding method. Usually, the bidding method is competitive bidding. Dutch-style method (also known as unified price bidding method), that is, issuing bonds at the lowest price (or the highest interest rate) among the successful bidders through bidding. The way of issuing bonds through public bidding is very beneficial to issuers. In the tender issue, the issuer can not only freely decide the issue conditions, but also obtain the highest issue price through bidding. However, the cost of this method is higher than negotiation and bargaining; The timetable cannot be changed casually; At the same time, the issuer needs to do a lot of promotion work.