German Government securities
The market for German Government securities is widely regarded as liquid, straightforward and clearly structured. With original maturities ranging from six months to 30 years, there are permanently between 60 and 70 liquid tradable securities in circulation across virtually the entire yield curve.
Maturities and volumes
German Government securities have maturities ranging from a half to 30 years. After their initial issue in the auction process and usually a number of increases, the capital market securities reach volumes of around € 15 bn to more than € 20 bn.
In the money market segment, the Federal Government issues Treasury discount paper (Bubills).
Capital market products start with Federal Treasury notes (Schaetze) with a maturity of two years, followed by five-year Federal notes (Bobls) and Federal bonds (Bunds) with maturities of ten and 30 years. Since 2006, the Federal Government has also been issuing inflation-linked securities (iBobls or iBunds) with maturities of five to 30 years.
German Government securities are generally placed as single issues via auction at volumes of at least € 1 billion. New issues with higher volumes take place, particularly in the capital market, which are followed by several increases, up to approximately € 15 billion. Such increases help ensure that there is a high level of liquidity for these securities on the secondary market itself and are also used by the Federal Government to ensure that futures contracts can be delivered on the highly liquid futures market, thereby confirming their important role on the equally liquid repo market.
Characteristics
Exchange-traded securities all have fixed maturities with redemption on maturity at the full nominal value, as well as annual fixed interest payments.
The principal characteristics of the German Government securities market are its fixed maturities, and fixed rates of interest in the case of Schaetze, Bobls and Bunds. Inflation-linked Bobls and Bunds also have a fixed (real) coupon. However, nominal interest amounts and repayments are in this case linked to an inflation index. Bubills, in contrast, are issued in the form of discount paper. All German Government securities are issued in the form of debt register claims without paper certificates.
Other characteristics are their eligibility to serve as insurance reserve for trusts and as ECB-eligible assets. Redemption is in each case at par value, with no provision for premature redemption by the issuer through call options or drawings. The smallest denomination is € 0.01 and interest is calculated on the basis of the customary methods of actual/365 or actual/366 for capital market securities and actual/360 for money market paper.
Proportions of outstanding volumes of Government bonds 2013 vs. 2018
Bubill = Treasury discount paper 6 or 12 months
Schatz = Federal Treasury note
Bobl = Federal note
Bund10 = 10- or 30-year Federal bond
ILB = inflation-linked Federal bond or note
The proportions of the individual securities making up the most part of the Federal Government debt have only changed slightly over the last five years. By far the most important security used as a means of Government funding is still the 10-year Federal bond. Federal Government securities with long term maturities, especially 30-year Federal bonds have gained importance. Therefore the share of short term securities like Federal Treasury notes and Treasury discount paper decreased. Since 2017, there are only issuances of 6 month Treasury discount paper.
Current Benchmark Issues of the Bund
| Security | Maturity | Coupon | Outstanding | Last Issuance | ISIN |
|---|---|---|---|---|---|
| Nominal Bonds | |||||
| Schatz | 10.12.2021 | 0.00 % | 9.0 € bn | 10.12.2019 | DE0001104784 |
| Bobl | 18.10.2024 | 0.00 % | 20.0 € bn | 27.11.2019 | DE0001141802 |
| Bund10 | 15.02.2030 | 0.00 % | 5.0 € bn | 08.01.2020 | DE0001102499 |
| Bund30 | 15.08.2050 | 0.00 % | 6.5 € bn | 15.01.2020 | DE0001102481 |
| Linker | |||||
| ILB (iBund10) | 15.04.2026 | 0.10 % | 16.3 € bn | 07.05.2019 | DE0001030567 |
| ILB (iBund30) | 15.04.2046 | 0.10 % | 8.9 € bn | 10.09.2019 | DE0001030575 |
Daily terms, prices and yields of listed issues (PDF)
Overview of outstanding, tradeable German Government securities as of last auction (PDF)
Monthly itemised list of outstanding German Government securities (PDF)
Monthly itemised list of outstanding German Government securities (XLS)