Last week, the Ministry of Finance announced the relevant arrangements for the issuance of general treasury bonds and ultra-long-term special treasury bonds in 2024, and the 1 trillion yuan ultra-long-term special treasury bonds planned to be issued this year are divided into three varieties: 20 years, 30 years and 50 years. Among them, there are 7 20-year tenors, 12 30-year tenors, and 3 50-year tenors, all of which pay interest semi-annually. It is clear that this year's ultra-long-term special treasury bonds will be issued for the first time on May 17, with a maturity of 30 years, and the interest payment method is semi-annual interest.

So, what are the characteristics of the issuance of ultra-long-term special government bonds? How should investors plan their purchases?

Where is the "cost performance" of government bonds?

Judging from the current market reaction, the enthusiasm for investment in treasury bonds is high. Because from the perspective of financial management, the long-term income and investment security of this treasury bond are obviously guaranteed. Yang Xiaomeng analyzed several advantages: First, the national credit guarantee. Ultra-long-term special government bonds have the highest credit rating and relatively low interest rates. In contrast, the interest rate on large certificates of deposit and bonds is affected by factors such as market supply and demand, the credit status of financial institutions, and other factors, and may have higher interest rates.

The second is to improve capital liquidity. The semi-annual interest payment of ultra-long-term special treasury bonds improves the liquidity of funds, and can also be regarded as "compound interest" in disguise for reinvestment. In contrast, if a large certificate of deposit is withdrawn in advance, the deposit interest rate will be calculated according to the current interest rate, and the withdrawal method is not as flexible as that of treasury bonds.

The third is the advantage of capital security. Ultra-long-term special treasury bonds have relatively higher security in terms of fund payment. Both the principal and the interest can be fully paid. In contrast, large certificates of deposit and other bonds are affected by the credit status of financial institutions and are subject to potential redemption risks.

Fourth, the yield advantage. The longer the maturity of a Treasury bond, the higher its yield is usually higher. According to recent data, the yield on the 2-year Treasury note is 1.89%, the yield on the 10-year Treasury note is 2.34%, and the yield on the 30-year Treasury note is 2.61%. In contrast, the interest rate of ultra-long-term special government bonds is usually higher than these values, which is more conducive to the preservation and appreciation of personal wealth.

Due to the long repayment period of these treasuries, they will attract investors who are looking for stable income and long-term investment opportunities, changing their investment strategies and preferences; Increase the market's expectation of RRR and interest rate cuts, thereby affecting the supply and demand relationship in the financial market.

Risk tolerance, investment objectives and time planning should be fully considered

The successive issuance of special treasury bonds has contributed to the improvement of market liquidity. For investors, under the current low interest rate level, the special treasury bonds have a longer maturity, and the yield should be higher in theory, behind which is the high credit security of the country.

The purchase of ultra-long-term special treasury bonds is an important financial decision for different age groups, and it is necessary to fully consider their risk tolerance, investment objectives and time planning. Yang Xiaomeng suggested that the maturity of ultra-long-term special treasury bonds usually exceeds 10 years, providing a stable source of income for young people in the future.

Due to its ultra-long maturity and relatively high interest rates, young people also need to pay close attention to the potential risks. Fully understand fiscal policy, monetary policy, industrial policy, etc., and maintain a high degree of attention to market changes. At the same time, it is necessary to make a comprehensive decision on the investment amount according to your own financial situation, such as income, expenses and other financial circumstances.

Increased focus on short- and medium-term coupon strategies

Under the influence of manual interest discount rectification, on the one hand, the income of wealth management and insurance institutions in the early allocation of deposits has declined, and some asset allocation may be inclined to coupon varieties, on the other hand, the income of residents' allocation of deposits has also declined, and residents' deposits may be inclined to wealth management and insurance products. According to the data of Puyi Standard, the scale of wealth management in April and May (as of May 12) increased by about 2.51 trillion yuan and 174.5 billion yuan respectively, compared with April and May 2023, the scale of wealth management increased by about 1.26 trillion yuan and 1531 trillion yuan respectively, and the current growth of wealth management scale significantly exceeded the level of the same period in previous years.

According to the asset varieties of financial preference, short- and medium-term credit bonds and short-term permanent bonds may benefit, and in the case that the interest rate strategy is difficult to excess, the attention to the short- and medium-term coupon strategy has increased recently.