The exchange rate for repurchases of national debt is essentially “the instant exchange price of short-term funds within the date of the transaction”。
It is not prescribed in advance, nor is it “given” by anyone. It is the result of a combination of supply and demand under specific rules。
The value of the negotiated rate is not “officially given”
First, let's be clear:
You see the exchange rate:
Who is involved in this “pricing”
At the level of rules, participants are not important and conduct is important。
At the point of any transaction, two types of behaviour exist in the system:
They all:
The exchange rate is not “a party decides”, but the point where the parties agree under the rules。
Interest rate is “price” and not “interest commitment”
This is a very confusing place。
In reverse purchase:
The term “annualized interest rate” is used for:
But it is not in itself a commitment to future gains。
Why does interest rates change on the same day and at the same time
Because the exchange rate reflects:
At some point in time, the supply and demand of funds are linked to the immediate state under the rules
If any of the following factors changes:
The interest rate is:
This is not an “ambivalence”, but a natural consequence of a continuum of mechanisms。
What is the relationship between a transaction rate and a “duration period”
The role of the deadline here is:
But attention needs to be paid to:
Duration is only a “precondition” for pricing and is not the reason for determining interest rates。
Even for the same period:
Summary
The counter-purchase rate of the national debt is expressed in terms of the short-term financial price generated in real time by the market participants through the exchange-brokering mechanism under the established term and liquidation rules。
It reflects:
Instead of:
A sweet hint
This paper is used only in the general description of the financial system and rationale and does not involve any operational guidance, benefit judgement or investment advice。
The periods, conversion methods and relevant figures referred to herein are for illustrative purposes only, subject to the actual rules and official information。
Markets are at risk, and understanding systems per se do not amount to an investment basis。
The content is for information purposes only and does not constitute an investment proposal。
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