This is another major product launched by CICC nearly two years after the launch of stock index futures. In this regard, Wenxin Niu published a blog post to support the resumption of treasury bonds futures. He pointed out that if China wants to completely realize the interest rate marketization reform, treasury bond futures is an indispensable tool.

Wenxin Niu recalled that 17 years ago, the national debt futures market was closed, mainly because of market chaos. However, Wenxin Niu believes that the chaos in the treasury bond futures market is superficial, and the key reason for the closure is that all interest rates, including treasury bonds, are not marketized, the national macro-control system has not been established, and the stable mechanism of CPI does not exist at all. In this context, starting interest rate futures basically does not have the function of finding prices, and the trading system that is completely unsuitable for the treasury bond futures market cannot be supervised in time, and even a series of problems left over to activate the market are the reasons for the closure of treasury bond futures.

Wenxin Niu pointed out that the market is much more mature now. China has accumulated a lot of experience in the supervision of the futures market, and the marketization of interest rates has reached a considerable level. The bond market and money market have basically realized the marketization of interest rates. Crucially, if China wants to completely realize the interest rate marketization reform, treasury bond futures are an indispensable tool. When the deposit and loan interest rate control is liberalized, the capital market pricing in the form of debt should be based on the yield of government bonds in the same period. However, the transaction in the spot market of national debt is very inadequate. At present, most of the national debt is held by commercial banks, and it is basically held for payment at maturity. Even if the interest rate market fluctuates greatly during the holding period, it is difficult to actually conduct spot trading of government bonds. Coupled with inter-agency transactions, it can not fully reflect the views of the whole market on interest rate changes, so there must be a fully traded national debt market that fully reflects the views of all sectors of society on interest rate trends in order to form an effective benchmark interest rate system. Such a market is none other than the treasury bond futures market.