Bund Issues Auction Group

Bund Issues Auction Group

Only credit institutions domiciled in a member state of the European Union can be members of the Auction Group. Membership of the Bund Issues Auction Group is regulated in the Rules of Procedure for Auctions for the Issuance of German Federal Bonds, Five-Year Federal Notes, Federal Treasury Notes and Treasury Discount Paper of the German Government (Opens external link in new windowAuction procedure - external Link).

To remain a member of the Auction Group a credit institution must subscribe to at least 0.05% of the total issuance allotted at the auctions in a calendar year weighted according to maturity. Members who do not reach the required minimum allotment drop out of the Auction Group Bund Issues. There are no other requirements placed on the members of the Auction Group.

A list is published each year ranking the members of the Auction Group Bund Issues by share of the weighted issuance volume allotted without stating further details.

37 credit institutions are currently members of the Auction Group Bund Issues (Opens external link in new windowCurrent Bund Issues Auction Group - external Link).

The weighting factors will not be changed for at least one year. They apply to both nominal as well as inflation linked bonds of the corresponding segment of (remaining) time to maturity.
The weighting factors will reflect various capital lockup and interest rate risks of German Government Securities of different maturities.
Because of changed market conditions, an adjustment of the weighting factors for 2012 was required. In contrast to the previously applicable factors, not the maturity at issuance but the remaining time to maturity for the assignment of the weighting factor is used.

Instrument

Remaining time to maturity

Weighting factor

Money market instruments

3 months

0,25

6 months

0,5

9 months

0,75

12 months

1

Capital market instruments

1-3 years

2

3-7 years

5

7-15 years

10

15-30 years

20

For the affiliation in the Bund Issues Auction Group the end-to-reach limit of 0.05% of the weighted total allocation will be unchanged.