Treasury discount paper ("Bubills")


Maturity: 6 months (or 12 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.

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.

By taking the approach of solely issuing six-months Bubills in 2017 the Bund returned to its issuance structure, it practiced till 2008 in the money market. This strategy will be carried on in the future.
Furthermore, for the first time the issuance approach introduced and established in 2018, consisting of six new issues of Bubills with a volume of € 3 bn and two reopenings of € 2 bn after one and after three months, each, will be carried out during the full year. This will lead to an issuance volume of six times € 7 bn, in total € 42 bn.
With the first reopening of last year's Bubill (new issued in December 2018 with a volume of just € 2 bn) in January of € 3 bn, it will reach its planned final outstanding volume of € 7 bn by the second reopening in March. Though, this increases the total money market issuance volume in 2019 by € 1 bn to € 43 bn.
This issuance volume will be achieved via 18 auctions and exceeds previous year's volume of € 35 bn (achieved via 15 auctions) by € 8 bn. It represents 21 % of the 2019 issuance volume across all Government securities (incl. inflation-linked securities), compared to almost 20 % in 2018.

The application of the new issuance approach reduces the total number of Bubills and, at the same time, increases the total issuance volume of each Bubill significantly. With the help of these measure, the issuer aims to strengthen the secondary market: Higher outstanding volumes are supposed to facilitate trading of larger positions and to further improve market liquidity. The issuance approach easily allows its continuation in and across the following years.

Bubills as a proportion of total issuance volume in 2019

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 2018 Bubills made up € 14 bn of German Government securities outstanding in the secondary market (incl. inflation-linked securities). Their share increased about half a percentage point to 1.3 % in comparison to year-end 2017. 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 11.12.2019 - 7,000 € m 23.09.2019 DE0001137800
Bubill 12.02.2020 - 5,000 € m 09.09.2019 DE0001137818
Bubill 08.04.2020 - 5,000 € m 11.11.2019 DE0001137826

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