Treasury discount paper ("Bubills")


Maturity: 6 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. Between 2017 and 2019 only Bubills with maturities of 6 months have been issued and partially been reopened. Starting in the second quarter of 2020, Bubills with a 12-month maturity have been issued again in a monthly pattern. From the third quarter onwards, new issues of 6-month Bubills will be discontinued, but the Federal Government is now offering a total of six maturities between 3 and 12 months by regularly tapping the 12-month Bubills.

Bubills as a proportion of total Government debt currently in circulation

Primary market

The Federal Government's money market paper with original maturities of 6 and 12 months form a key element of the Federal Government's annual issuance plan. Of all German Government 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.

Furthermore, in 2020 the issuance approach introduced and established in 2018 was initially intended to be continued and expanded. Every month (prior every two months), new issues of Bubills with a volume of € 3 bn were planned. After one month each issue was considered to be reopened by € 1.5 bn, the Bubills issued in the first month of a quarter to be tapped for a second time after 3 months by € 2 bn, each.

Due to the short-term increase in the Federal government's financing requirements, the auction planning of money market paper was the most heavily modified:
For the time being, the auction volume and reopening pattern for 6-month Bubills will be maintained. During the second and third quarter all auction volumes were increased to € 4 bn. Thereafter 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. During the second and third quarter monthly new issues and reopenings had an auction volume of € 4 bn, each. In the fourth quarter reopenings amount to € 1.5 bn, each, the new issue in October totals € 3 bn, the new issue in November € 2 bn, whereas the new 12-month Bubill in December will be omitted.

New issues are reopened after one, three, six, seven and nine months. In preparation for this reopening pattern, only in the second quarter one Bubill with a term of 11 months and two with a term of 9 months were also scheduled as new issues. It is planned to continue this pattern of monthly new issues and increases in the twelve-month Bubills. So in the third and fourth quarter, their reopenings were to successively and completely replace the issuances of the 6-month Bubills announced in the annual forecast. Investors will thus have the opportunity to invest in the money market every month from now on in remaining maturities of 12, 11, 9, 6, 5 and 3 months.
Since 20 April 2020, multi-ISIN auctions which the Federal Government has already established for inflation-linked Federal securities are also used for Bubills.

On an annual basis, these adjustments from the second quarter onwards will lead to a total issuance volume of € 181 bn, € 119 bn higher than the annual preview of € 62 bn. This represents more than the quadruple of previous year’s issuance volume and now amounts to 45 % of the total issuance volume across all securities (auctions and syndicates), compared to 21 % in 2019.

Annual volume in € bn 2019
annual preview
2020 quarterly
Bubill 6M auction volume 43 62 83
Bubill 12M auction volume


- 92
total 43 62 175

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 securities is specified on a daily basis, of green securities in the course of their publication in the quarterly issuance calendar. So in this chart their share increases during the year with each new issuance of an inflation-linked security or publication of a green security, whereby the shares of the other Federal securites decrease slightly. Also included in this annual chart are the one-off reopenings to the Federal Government's own holdings of 21 off-the-run Federal bonds of € 2 bn, each, on 1 April and again of 32 off-the-run Federal bonds, 7 Federal notes and 1 Federal Treasury note of 2.5 bn, each, on 16 April. Additionally, complete increases of conventional twins into the own holdings in the course of issuances of green securities increase the issuance volume but not the auction volume, too.

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 1.8 % (€ 84 bn) of the trading volume of German Government securities of the reporting member banks in 2018. In 2019 their share increased by 40 % to 2.8 % (€ 116 bn).

Currently tradeable Treasury discount paper

Bond Maturity Coupon Outstanding last Auction ISIN
No security was found.
12M Bubill 20.01.2021 - 13,500 € m 12.10.2020 DE0001030294
12M Bubill 03.02.2021 - 12,000 € m 21.09.2020 DE0001030310
12M Bubill 03.03.2021 - 13,500 € m 19.10.2020 DE0001030302
12M Bubill 14.04.2021 - 13,500 € m 05.10.2020 DE0001030203
12M Bubill 05.05.2021 - 12,000 € m 10.08.2020 DE0001030211
12M Bubill 09.06.2021 - 12,000 € m 14.09.2020 DE0001030229
12M Bubill 28.07.2021 - 9,500 € m 12.10.2020 DE0001030237
12M Bubill 25.08.2021 - 8,000 € m 21.09.2020 DE0001030245
12M Bubill 29.09.2021 - 5,500 € m 19.10.2020 DE0001030252
12M Bubill 27.10.2021 0.00 % 3,000 € m 26.10.2020 DE0001030260
Bubill 04.11.2020 - 12,000 € m 10.08.2020 DE0001137883
Bubill 09.12.2020 - 12,000 € m 14.09.2020 DE0001137891

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