Treasury discount paper ("Bubills")


Maturity: 6 months

Income: difference between par value and purchase price

Redemption: at par value

Price risk: very low

Issuer risk: very low

With maturities of up to twelve months, Treasury discount paper (Bubills) are the Federal Government's money market paper. Since 2017 only Bubills with maturities of 6 months have been issued.  Reopenings are carried out one or three months after first issue.

Bubills as a proportion of total Government debt currently in circulation

Primary market

The Federal Government's six-month money market paper form a key component of the Federal Government's annual issuance plan.

The Federal Government's six-month money market paper form a key component of the Federal Government's annual issuance plan.
By taking the approach of solely issuing six-months Bubills since 2017 the Bund returned to its issuance structure, it practiced till 2008 in the money market.

Furthermore, in 2020 the issuance approach introduced and established in 2018 will be continued and expanded. Every month (prior every two months), new issues of Bubills with a volume of € 3 bn will be carried out. After one month each issue will be reopened by € 1.5 bn. The Bubills issued in the first month of a quarter will be tapped for a second time after 3 months by € 2 bn, each. During the full year this will lead to an issuance volume of eight times € 4.5 bn and four times € 6.5 bn, adding up to € 62 bn in total.

According to this pattern, in January 2020 the reopenings of last year's Bubills, issued in October and December 2019,will reach their planned final outstanding volumes of € 7 bn and € 4.5 bn, respectively.

This issuance volume, achieved via 28 auctions, exceeds previous year's volume of € 43 bn (achieved via 18 auctions) by € 19 bn. It represents 29 % of the 2020 issuance volume across all Government securities, compared to almost 21 % in 2019.

With the help of this measure, the issuer aims to strengthen the secondary market: Trading of larger positions should be facilitated and market liquidity should be improved further. The issuance approach easily allows its continuation in and across the following years.

Bubills as a proportion of total issuance volume in 2020

In contrast to the issuance volumes of nominal bonds which already had been fixed within the issuance calendar for the whole year, the issuance amount of the inflation-linked bonds is specified on a daily basis. So in this chart their share increases during the year with each new issuance of an inflation-linked bond (whereby the shares of the nominal bonds decrease slightly).

Secondary market

At year-end 2019 Bubills made up € 15 bn of German Government securities outstanding in the secondary market (incl. inflation-linked securities). Their relative share remained around previous year’s level of a bit more than 1 %. Bubills also accounted for 1.4 % (€ 69 bn) of the trading volume of German Government securities of the reporting member banks in 2017. In 2018 their share increased slightly to 1.8 % (€ 84 bn).

Currently tradeable Treasury discount paper

Bond Maturity Coupon Outstanding last Auction ISIN
No security was found.
Bubill 12.02.2020 - 7,000 € m 25.11.2019 DE0001137818
Bubill 08.04.2020 - 7,000 € m 13.01.2020 DE0001137826
Bubill 10.06.2020 - 4,500 € m 20.01.2020 DE0001137834
Bubill 08.07.2020 - 3,000 € m 06.01.2020 DE0001137842

The terms of issue for Treasury discount paper are available within the security master data after clicking on the corresponding ISIN.