Treasury discount paper ("Bubills")


Maturity: 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 securites. Between 2017 and 2019 only Bubills with maturities of 6 months were issued and partially reopened. Starting in the second quarter of 2020, in response to the noticeably higher Covid-19 related funding requirements in the short term, Bubills with a 12-month maturity have been issued again in a monthly pattern. The new issues of 6-month Bubills were discontinued from the third quarter 2020 onwards. Instead, the Federal Government is now offering a total of six remaining maturities between 3 and 12 months via five reopenings of the 12-month Bubills. This issuance pattern will be continued in 2021.

Bubills as a proportion of total Government debt currently in circulation

Primary market

The Federal Government's money market paper with original maturitiy of 12 months form a key element of the Federal Government's annual issuance plan. Of all Federal securities, they enable the Federal Government to react most flexibly to short-term changes in financing requirements.

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.
Due to the Covid-19 related short-term increase in the Federal Government's financing requirements, the issuance planning of money market paper was the most heavily modified. During the second quarter all auction volumes of 6-month Bubills were increased, from the third quarter onwards, there were no issuances of 6-moth Bubills conducted anymore.

Instead, starting from April, Bubills with a 12-month maturity have been issued again for the first time since 2016. According to a new issuance pattern, since then new issues are reopened after one, three, six, seven and nine months. Thereby multi-ISIN auctions which the Federal Government has already established for inflation-linked Federal securities are also used for Bubills.
According to the annual forecast for 2021 it is planned to continue this pattern of monthly new issues and five subsequent increases of 12-month Bubills. Bubills with eleven-, nine-, six-, five- and three-month remaining maturities are planned to be reopened almost every month.

The issuance volume of Bubills will increase by about a quarter from € 181 bn in 2020 to € 241 bn in 2021. Their share now corresponds to 51 % of the total auction volume, after 45 % of the issuance volume (auctions and syndicates) in 2020.

Bubills as a proportion of total issuance volume in 2021

In contrast to the issuance volumes of nominal and money market securities which already had been fixed within the issuance calendar for the whole calendar year, the issuance amount of the inflation-linked securities is specified only right before issuance. So in this chart their share increases over the course of the year with each new issuance of an inflation-linked security whereby the shares of the other Federal securites decrease slightly. Similarly, the issuance volumes from syndicates and the increases of conventional twins of Green Federal securities into the Federal Government's own holdings are only included on the date of issuance. They lift the issuance volume - but not the auction volume.

Secondary market

At year-end 2020 Bubills made up € 113,5 bn of Federal securities outstanding in the secondary market (incl. inflation-linked securities). This corresponds to a share of about 8% of the volume of all outstanding Federal securities and is more than 7 times the previous year's volume. Bubill's share of trading volume in all Federal securities more than tripled from 3 % to 10 % or € 116 bn in 2019 to a record of € 421 bn in 2020.

Currently tradeable Treasury discount paper

Bond Maturity Coupon Outstanding Last Issuance ISIN
No security was found.
12M Bubill 29.09.2021 - 15,500 € m 07.06.2021 DE0001030252
12M Bubill 27.10.2021 - 17,500 € m 05.07.2021 DE0001030260
12M Bubill 24.11.2021 - 15,000 € m 02.08.2021 DE0001030278
12M Bubill 15.12.2021 - 16,500 € m 06.09.2021 DE0001030328
12M Bubill 19.01.2022 - 17,000 € m 16.08.2021 DE0001030336
12M Bubill 23.02.2022 - 15,000 € m 09.08.2021 DE0001030344
12M Bubill 23.03.2022 - 14,000 € m 13.09.2021 DE0001030351
12M Bubill 21.04.2022 - 10,000 € m 05.07.2021 DE0001030369
12M Bubill 18.05.2022 - 10,000 € m 02.08.2021 DE0001030377
12M Bubill 22.06.2022 - 10,500 € m 06.09.2021 DE0001030385
12M Bubill 20.07.2022 - 7,000 € m 16.08.2021 DE0001030393
12M Bubill 24.08.2022 - 4,000 € m 23.08.2021 DE0001030401

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