March 2nd, the balance of treasure 7 annual yield fell to 5.9710%, the first time since last year, fell below 6% in December 26th.
how to treat this phenomenon? What is the reason for the decline in yields to solve these doubts not only related to the vital interests of investors, but also related to the stability of the future development of Internet banking.
balance treasure and other Internet financial products are basically the money invested in the money market and stable bank deposits. The characteristics of the money market is low return (generally slightly higher than the benchmark deposit rate), yield stability, high security, strong liquidity.
last year, the balance of treasure initial launch, the annual rate of return of 7 easily jump up to more than 6%, is a special case of a special time. At that time, money shortage in the background, the balance of treasure is a lucky time to live.
is the balance of treasure was born in the money market is extremely high price period, and invest in the extremely high price of the currency market. The fund will be invested in these funds at zero cost profit high annual yield of more than 8%-10% of the money market through the balance of treasure platform, to customers in return of around 6% is entirely possible to achieve.
why now yields fell below 6% because of the relatively loose liquidity after the Spring Festival, the money market interest rates fall. Shanghai interbank market overnight lending rate has fallen below 2% in March 3rd; one week and two weeks were decreased to 2.821% and 3.734%, a year down to 5.0001%. This will result in a substantial decline in the balance of treasure deposit agreement.
that is, the return of the balance of treasure depends on the state of the money market money market price movements, and money market funds and the price trend depends on the money market liquidity shortage or not. Therefore, the balance of treasure yields decline is completely normal, but also from the money shortage strange phenomenon to return to the symbol of a rational normal.
future balance of treasure and other Internet financial products trend, but also the money market situation.
as for the balance of treasure and other Internet financial products to invest whether there is a risk problem, any financial transaction investments are risky. However, as a monetary fund investment risk is relatively small. The fund portfolio Celestica increasedliberty Monetary Fund announced in 2013 fourth quarter report, bank deposits and settlement provisions accounted for up to 92.21%. Therefore, the balance of treasure to ask how much risk, it is tantamount to ask the probability of bank failures.