Abstract:

The bond markets, especially the treasury bond markets, in developed countries have been developing quickly and playing a more important role in financial markets in near twenty-five years. The fact indicates that there is a wide and bright prospect of bond-market development in China. At present the development of government bond markets consisting of treasury bond and municipal bond should be attached great importance to. Our government should adopt a positive and initiative fiscal policy and issue long-term treasure bonds of ten to thirty years in large size. It is very necessary and feasible to set up and develop municipal bond markets in our country owing to its specially important role in China-such a large country.

Key words: bond market, government bond market, treasure bond, municipal bond