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 will be issued again in a monthly pattern.

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 new issue and reopening pattern for 6-month Bubills will be maintained. However, all auction volumes will be increased to € 4 bn in the second quarter of 2020.
In addition, Bubills with a 12-month maturity will be issued again for the first time since 2016.

Starting in April, new issues are to be increased 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 and a volume of EUR 4 billion, each, are also scheduled as new issues.

From 20 April 2020, multi-ISIN auctions will also be used, which the Federal Government has already established for inflation-linked Federal securities. Six multi-ISIN auctions, each with two Bubills, are planned for the second quarter. Five existing issuance dates will be used for this purpose, plus a new date on 4 May 2020. A further Bubill auction not announced in the previous calendars will be held on 29 June 2020.

On an annual basis, these adjustments in the second quarter will lead to a total issuance volume of € 118.5 bn, € 56.5 bn higher than the annual preview of € 62 bn. This represents more than the triple of previous year’s issuance volume and now amounts to more than 40 % of the total auction volume across all securities (without inflation-linked), compared to 21 % in 2019.

Annual volume in € bn 2019
annual preview
Q2 2020
annual updates
Bubill 6M auction volume 43 62 82.5
Bubill 12M auction volume


- 36
total 43 62 118.5

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. Also included in this annual chart is the one-off reopening of 21 off-the-run Federal bonds of € 2 billion, each, on 1 April to the Federal Government's own holdings, which increases the issuance volume but not the auction volume.

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.
12M Bubill 20.01.2021 - 4,000 € m 20.04.2020 DE0001030294
12M Bubill 03.02.2021 - 4,000 € m 04.05.2020 DE0001030310
12M Bubill 03.03.2021 - 4,000 € m 27.04.2020 DE0001030302
12M Bubill 14.04.2021 - 8,000 € m 25.05.2020 DE0001030203
12M Bubill 05.05.2021 - 4,000 € m 18.05.2020 DE0001030211
Bubill 10.06.2020 - 4,500 € m 20.01.2020 DE0001137834
Bubill 08.07.2020 - 8,500 € m 20.04.2020 DE0001137842
Bubill 05.08.2020 - 8,500 € m 04.05.2020 DE0001137859
Bubill 09.09.2020 - 7,000 € m 27.04.2020 DE0001137867
Bubill 07.10.2020 - 8,000 € m 25.05.2020 DE0001137875
Bubill 04.11.2020 - 4,000 € m 11.05.2020 DE0001137883

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