The inflation-linked five-year Federal note with the shorter remaining time to maturity due on April 15th 2013 and a coupon of 2.25% is the first point along the Federal Government’s real-yield curve.
Primary Market
The securities were first issued by auction in October 2007 and April 2011, since when it has been or will be reopened.
Secondary Market
The volume currently in circulation is € 11 billion (maturing in 2013) and € 3 billion ( maturing in 2018).
Characteristics
Interest is paid annually in arrears on the basis of an indexed interest rate, adjusted for inflation according to the European reference index (HVPI – excluding tobacco). Original maturity is five years, with redemption at least at par according to the development of inflation, and interest calculated on an actual/actual basis.
