Repurchase agreements are used for secured borrowing on the money market through the sale of securities linked to an agreement to repurchase securities of the same type at a future date and at a fixed price.

Securities held in the Federal government's own holdings may be used to finance the budget within the limits defined in the Federal Budget law.

As they support liquidity on the secondary market, repo transactions have been conducted primarily for market management in recent years - increasingly so since the start of the ECB's purchase programme. These so-called market repos are thus another important contribution to increasing the availability of German Government securities and thus consolidate the benchmark status of the Federal government.