Earn 4 days' interest in 1 day, the government bond reverse repurchase strategy is here

Q

What are the advantages of Treasury bond reverse repurchase?

A

Treasury bond reverse repurchase has multiple advantages, such as good safety, low risk, flexible terms, and allows investors to effectively allocate funds according to their needs.

Q

How to “earn more” interest?

A

The interest calculation rule for Treasury bond reverse repurchase is “calculate the head, not the tail.” The actual days counted for interest are from the settlement date of the funds (inclusive) to the settlement date of maturity (exclusive).

Today (April 2), operating a 1-day Treasury bond reverse repurchase can earn 4 days of interest. Funds will be available on April 3, and can be withdrawn on April 7; operating a 2, 3, or 4-day reverse repurchase can earn 5 days of interest, with funds available on April 7 and withdrawable on April 8.

It is worth noting that April 3 is the last trading day before the holiday. If you operate a Treasury bond reverse repurchase at this time, you will not enjoy the holiday yield.

The chart below shows the operation strategy for Treasury bond reverse repurchase during the Qingming holiday. Investors can choose the appropriate reverse repurchase product based on their needs.

Chart: Lian Run

Treasury bond reverse repurchase funds, upon maturity, will have a distinction between “available day” and “withdrawal day.” “Available” means the funds can be used to buy securities (such as stocks, funds), while “withdrawable” means the funds can be transferred to a bank card. When funds are “available” but not yet “withdrawable,” investors can continue to buy onshore money market funds to achieve seamless interest accrual.

Q

How to operate?

A

Whether it is Shanghai or Shenzhen market products, the minimum investment threshold for Treasury bond reverse repurchase is 1,000 yuan, increasing in multiples of 1,000 yuan. When choosing products, investors can consider their repayment timing needs and yield rates comprehensively.

In terms of operation, during trading hours (each trading morning from 9:30 to 11:30, and afternoon from 13:00 to 15:30), usually on the trading platform, click on the “Treasury bond reverse repurchase” option. The real-time yield rates and interest days for each product in Shanghai and Shenzhen markets are clear at a glance. Select the product, lending rate, and amount to operate.

Operating Treasury bond reverse repurchase not only requires paying attention to the interest days but also to the real-time fund prices. The yield of Treasury bond reverse repurchase fluctuates like stocks in real time, but the actual interest is calculated based on the moment of sale. Investors may consider placing orders in batches to capture the highest yield of the day. Additionally, note that after 3 p.m., reverse repurchase rates generally tend to decline.