Treasury has been one of the most important financial funding systems of the Chinese government and the core of Chinese financial system. Primary market is the initial link of issuance, and the auction results affect future interest costs directly. However, because of limited data published by Ministry of Finance, there is a lack of relative studies on auction in China, which impedes the development of Chinese treasury market. Based on data from January 2014 to July 2017, an innovative method is proposed to calculate the three parameters of market bid functions by solving nonlinear equations and analyzing the factors influencing Chinese treasury auctions bidding. The result illustrates that primary market of treasury is highly correlated with the yield curve and trading volumes in the secondary market, and it’s influenced by the liquidity of banking system.