Trading Volumes

The turnover in Federal securities regularly reported by the banks of the auction group provides an indicative insight into the structure of the secondary market in Federal securities.

A representative part of the members of the Bund Issues Auction Group voluntarily report their trades in Federal securities (Bubills, Schaetze, Bobls, Bunds, Green Federal securities and inflation-linked Federal securities) - categorized by type of Federal security traded, by region and by institutional form of the trading partner. Based on trading volumes and net positions, this allows the Finance Agency to identify rough structures of the secondary market trading.

For example, a net position of € -22 bn vis-à-vis brokers corresponds to a € 22 bn higher volume of purchases by auction group members from brokers than sales to brokers. The trading data published here are provisional, as later subsequent submissions may lead to corrections.

Annual Comparison of Trading Volumes 2023 vs. 2022

in € BN 20232022
(Gross-) Trading Volume 6,6166,636
Net Trading Volume 352319

At € 6,616 bn, the trading volume reported for 2023 almost reached the previous year's above-average level of € 6,636 bn. At the same time, the volume of tradable Federal securities (excluding the federal government's own holdings) rose by almost 9 % to € 1,635 bn over the course of the year. The turnover rate, which indicates how often a Federal security changes hands on average, fell from 4.4 in the previous year to 4.0 in 2023.

Funding Instruments 2023

Trading Volume - Funding Instruments

The sixth increase and the fourth consecutive record volume in Treasury discount paper trading are evidence of the high level of investor interest in the money market segment. A yield of 3.3 % on average for 2023 and the second-highest volume outstanding since 2005 are likely to be key drivers here. The trend in trading green Federal securities is also continuing steadily upwards. However, it only increased by 8 % from last year's peak, while the outstanding volume rose by almost 50 %. Federal notes achieved the highest percentage growth in trading at 15 %. As in every year to date, they were the second most traded Federal securities in 2023. Despite a 10% increase, Federal Treasury notes traditionally only achieved the third-highest trading volume of all Federal securities. They and Federal notes each saw the second-highest turnover since statistics began in 2005.
Turnover in 10-year Federal bonds fell by 9 % in 2023, but still accounted for around twice as much as trading in Federal notes. 30-year Federal bonds were traded 6 % less, but still with the third-highest volume in the statistics. Only trading in inflation-linked Federal securities saw a clear double-digit decline of 30 %. They were the only Federal securities whose trading volume in 2023 was below the average of the last three years and whose volume in circulation was below the previous year's level.

Gross-Trading (in € bn)20232022

Net-trading Volume - Funding Instruments

Net-trading (in € bn)20232022

Regions 2023

Trading Volumes - Regions

Among the major trading regions, only the euro area traded 11 % more Federal securities in 2023 than in the previous year, the third-highest volume in the statistics. Trading partners from Asia and by far the most important 'other Europpe' (countries outside the euro area) traded marginally less. American counterparties transacted 10 % less. However, at the second-highest level since the statistics began, they once again exceeded the 1 trillion euro mark after the previous year. euro mark. Arab and African trading partners together traded only 1 % of Federal securities.

Gross-trading (in bn. €)20232022
United States of America1.1131.231
Arabic states3613
Euro area1.8331.648
Other Europe3.2853.374

Net-trading Volumes - Regions

For the first time since 2019, net purchases of Federal securities in the rest of Europe, at € 165 bn, were higher than in the € area, previously the most important sales region, at € 104 bn. American counterparties more than quadrupled their net purchases to a new high of € 66 bn. There continues to be a strong correlation with hedge fund activities. By contrast, Asian counterparties reduced their net purchases by 60 % to € 15 bn. On balance, purchases from Africa and Arab countries were again only in the low single-digit billion range.

Net-trading (in € bn)20232022
United States of America6614
Arabic states 14
Euro area104156
Other Europe165106

Institutions 2023

Trading Volumes - Institutions

When broken down by institution, banks increased their trading activities the most at 19 %. Pension funds have already been increasing their turnover in Federal securities for 5 years - by 9 % in 2023. Turnover via brokers remained at the previous year's level. Asset managers and hedge funds, the two turnover drivers of the last three years, recorded marginal declines in trading volumes in 2023 - but both at their second-highest level since statistics began. The turnover of insurance companies and central banks fell by 24 % and 20 % respectively and was more than 10 % below the three-year average, while asset managers, banks and hedge funds clearly exceeded this average by more than 30 %, 40 % and 50 % respectively.

Gross-trading (in € bn)20232022
Asset Manager2,0052,057
Hedge funds971988
Pension funds9587
Central Banks566706

Net-trading Volumes - Institutions

2023 is the year of record net sales: 4 of the 8 counterparty types bought at record levels. In line with gross trading activity, asset managers dominate with net purchases totalling € 125 bn. For the first time since 2005, they succeeded in replacing the central banks as the most important buyers. On balance, the latter acquired a rather average € 116 bn by their standards, around half of the previous year's volume. Banks set a new record of € 82 bn, with purchases 45 % higher than in the previous year. Hedge funds increased their net purchases from the previous year sixfold to € 63 bn and pension funds also achieved their highest net purchases of € 20 bn with steady growth since 2019. For insurance companies, net purchases of almost € 6 bn represented the third-highest level since statistics began, while other investors made net purchases of Federal securities with a nominal value of around € 10 bn.

Net-trading (in € BN)20232022
Asset Manager12591
Hedge funds6310
Pension funds2117
Central banks116228