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

Primary market

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

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

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

Bond Maturity Coupon Outstanding last Auction ISIN
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

The terms of issue for Treasury discount paper are available within the security master data after clicking on the corresponding ISIN.