Study on return rate volatility of treasury bonds in China with padé approximants

This paper studies the volatility rules of the treasury bonds return rate by using the Padeapproximants model.It is shown that the return rate obeys the negative power laws distribution.This discovery is made by using the Hill estimator which is to test the distribution tails.All of these are based on the analyses of the distribution character of the treasury bonds daily return rate.According to the calculated Pareto index,this paper chooses the p~([0,4]) model to examine China' s treasury bonds return rate which belongs to different maturity date.This examination suggests the P~([0,4]) model can approximate the return rate volatility of different term treasury bonds well.