Treasury discount paper ("Bubills")
Maturity: 6 or 12 months
Income: difference between par value and purchase price
Redemption: at par value
Price risk: very low
Liquidity risk: medium
Issuer risk: very low
With maturities of up to twelve months, Treasury discount paper (Bubills) are the Federal Government's money market paper.
Bubills as a proportion of total Government debt currently in circulation
The Federal Government's six-month money market paper form a key component of the Federal Government's annual issuance plan.
By taking the approach of solely issuing six-months Bubills in 2017 the Bund returns to its issuance structure, it practiced till 2008 in money market. In a monthly pattern from February till November ten six-months Bubills with a volume of € 2 bn each will be issued - reaching a proportion of the total issuance volume of German Government securities (incl. inflation-indexed Government securities) of € 20 bn or about 11 % (2016: € 28 bn and almost 14 %).
The reduction of the total issuance volume in the money market by € 21.5 bn additionally stems from the suspension of the issuance of twelve-months Bubills that were issued in 2016 with a volume of € 13.5 billion.
In January and December 2017 there won't be any issuances of Treasury discount paper.
Bubills as a proportion of total issuance volume in 2017
At year-end 2016 Bubills made up around 2 % (€ 23.5 bn) of German Government securities outstanding in the secondary market. Thereof six-month-Bubills accounted for € 10 bn and twelve-month-Bubills represented € 13.5 bn. Their aggregate share steadied at 2 % in comparison to year-end 2015. Bubills also accounted for almost 2 % of the trading volume of German Government securities of the reporting member banks in 2015, compared to 3 % in 2014.
Currently tradeable Treasury discount paper
|Bubill||10.01.2018||-||2,000 € m||10.07.2017||DE0001137677|
|Bubill||14.02.2018||-||2,000 € m||14.08.2017||DE0001137685|
|Bubill||14.03.2018||-||2,000 € m||11.09.2017||DE0001137693|
|Bubill||11.04.2018||-||2,000 € m||09.10.2017||DE0001137701|
|Bubill||16.05.2018||-||2,000 € m||13.11.2017||DE0001137719|