With a maturity of two years, Federal Treasury notes (Schaetze) are the shortest-dated capital market instruments issued by the Federal Government. They account for about 12% of the  Government’s outstanding debt portfolio in 2011.

Primary Market

There are four new issues each year, each  with a volume of about € 19 billion in the following month through one or two reopenings. Schaetze make up about 24% of the annual issuance calendar in 2011.

Secondary Market

In line with the issuance pattern in the primary market, there are usually eight Schaetze in circulation. Schaetze account for about 12% of German Government securities currently outstanding in the secondary market. In 2010, the volume in circulation averaged € 130 billion. Schaetze are one of the most liquid class of German Government securities.

Characteristics

Interest paid annually; redemption at par; interest calculated on an actual/365 or actual/366 basis; not redeemable prematurely and not callable by the issuer.