(1) The bond index reflects the overall price of the bond market and reveals the characteristics of the market trend. As a benchmark to measure the overall yield of the bond market, it can also be used as a reference for macroeconomic analysis to analyze and study the market.
(2) As the basis for measuring the overall yield level of the bond market, it is the standard for evaluating the outstanding performance of investors. Investors can choose a certain investment evaluation interval, calculate the return rate of the index within the interval, and then compare it with their own investment return level to judge the quality of investment performance. This also provides a basis for financial institutions to assess the performance of bond investment-related departments.
(3) Help investors to build an index bond portfolio. Bond index can help investors to build an index bond portfolio, simulate and keep an eye on the overall income level of the bond market, reduce the daily trading operation cost and track the overall income level of the bond market.
(4) Help the financial supervision department to grasp the information of the bond market in time. As an indicator of the overall price trend of the bond market, the bond index can help the financial supervision department to grasp the current market situation in a timely and accurate manner and formulate an open market operation strategy. At the same time, the bizarre prices in the market will also be clearly reflected in the index, which can help the regulatory authorities find market violations in time.
(5) Help bond issuers understand the market situation and make bond issuance plans. Issuers of all kinds of bonds can understand the current situation and history of the bond market through the bond index, and provide decision-making help for them to formulate the bond issuance period and price.