Three ten-year inflation-linked Federal bonds are currently outstanding, the most recently issued of which has a coupon of 0.10% and a maturity of April, 15th 2023. The second has a coupon of 1.75% and is due on April 15th, 2020.
Primary Market
The ten year “Bund/ei” marked the issuer’s debut in this market segment in March 2006. Since then the issue has been reopened three times and a second “Bund/ei” was issued in June 2009 with five taps to date.
Secondary Market
The volume currently in circulation is € 32 billion.
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). The original maturity is 10 years, with redemption at least at par according to the development of inflation, and interest calculated on an actual/actual basis.
