Federal notes ("Bobls")

Profile

Maturity: 5 years

Income: fixed annual interest payment

Redemption: at par value

Price risk: medium

Liquidity risk: very low

Issuer risk: very low

Federal notes (Bobls), which have maturities of five years, represent the middle of the German Government yield curve.

Bobls as a proportion of currently tradeable Government debt

Primary market

After Bunds, Bobls are the Federal Government's second most important source of funding. Two new series will be issued in 2017, too.

In 2017, about 20 % or € 35 bn of the annual issuance volume (including inflation-indexed Government securities) on the capital market is represented by Bobls (previous year: € 40 bn or 20 %).
According to the 10-year Federal bonds the there will be two new series of Federal notes auctioned in February (series 175) and July (series 176) 2017. After a first issuance volume of € 4 bn both Bobls with maturities in April  and October  2022 will be reopened four times with auction volumes of € 3 to 4 bn until they reach outstanding volumes of € 18 bn and € 17 bn respectively.

Bobls as a proportion of total issuance volume in 2017

In contrast to the issuance volumes of nominal bonds which already had been fixed within the issuance calendar for the whole year, the issuance amount of the inflation-linked bonds is specified on a daily basis. Their share increases during the year with each new issuance of an inflation-linked bond (whereby the shares of the nominal bonds decrease slightly).

Secondary market

As at the end of 2015, Bobls accounted for about a fifth of tradable German Government securities in circulation. At year-end 2015, the outstanding volume averaged around € 238 bn. In 2016, Bobls made up about 16 % of the trading volume in German Government bonds of a representative share of the banks making up the Bund Issuers Auction Group.

Currently tradeable five-year Federal notes

Bond Maturity Coupon Outstanding last Auction ISIN
Bobl 23.02.2018 0.50 % 17,000 € m 03.04.2013 DE0001141653
Bobl 13.04.2018 0.25 % 17,000 € m 07.08.2013 DE0001141661
Bobl 12.10.2018 1.00 % 17,000 € m 04.12.2013 DE0001141679
Bobl 22.02.2019 1.00 % 16,000 € m 02.04.2014 DE0001141687
Bobl 12.04.2019 0.50 % 16,000 € m 06.08.2014 DE0001141695
Bobl 11.10.2019 0.25 % 16,000 € m 03.12.2014 DE0001141703
Bobl 17.04.2020 0.00 % 20,000 € m 03.06.2015 DE0001141711
Bobl 16.10.2020 0.25 % 19,000 € m 11.11.2015 DE0001141729
Bobl 09.04.2021 0.00 % 21,000 € m 01.06.2016 DE0001141737
Bobl 08.10.2021 0.00 % 19,000 € m 30.11.2016 DE0001141745
Bobl 08.04.2022 0.00 % 18,000 € m 07.06.2017 DE0001141752
Bobl 07.10.2022 0.00 % 14,000 € m 11.10.2017 DE0001141760

The terms of issue for Federal notes are available within the security master data after clicking on the corresponding ISIN.