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 money market. In 2018 this strategy is carried on. Building on the previous years, the total number of Bubills will be reduced further. At the same time the total issuance volume of each new Bubill will be increased significantly.
So ttarting from February (there will be no issuance in January) a new issuance approach is carried out: It is intended to issue six 6-month Bubills with a volume of € 3 bn each and to increase them by € 2 bn each after one and after three months. This provides for 15 auctions a total volume of € 36 bn which represents a proportion of the total issuance volume of German Government securities (incl. inflation-indexed Government securities) of about 19 %, € 16 bn more than 2017 (with a share of around 11 %).

The new issuance approach will be introduced in a way, which would easily allow its continuation in the following years. With the help of these measures, 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.

Bubills as a proportion of total issuance volume in 2018

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. 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 2017 Bubills made up around € 10 bn of German Government securities outstanding in the secondary market. Their share dropped to less than 1 %, minus 1 percentage point in comparison to year-end 2016 . Bubills also accounted for almost 2 % of the trading volume of German Government securities of the reporting member banks in 2015, compared to 3 % in 2014.

Currently tradeable Treasury discount paper

Bond Maturity Coupon Outstanding last Auction ISIN
No security was found.
Bubill 14.03.2018 - 2,000 € m 11.09.2017 DE0001137693
Bubill 11.04.2018 - 2,000 € m 09.10.2017 DE0001137701
Bubill 16.05.2018 - 2,000 € m 13.11.2017 DE0001137719
Bubill 15.08.2018 - 3,000 € m 12.02.2018 DE0001137727

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