Primary market

The Federal Government covers almost 100 percent of its funding needs via one-off issues on the primary market. The bonds are generally issued as part of a tender/auction process in which financial institutions are able to participate once they are accepted into the Bund Issues Auction Group.

Almost the entire Federal Government's funding needs are covered by one-off issues via auction process. The exact issuance plan is published in advance for the full calendar year.

Special funding tools, such as the US-dollar bonds issued in 2005 and 2009 or the Bund-Laender-Anleihe issued in 2013, are placed by the Federal Government on the primary market via a banking consortium (syndicate). The first 10-year and the first 30-year inflation-linked Federal bond 2006 and 2015 were also issued via syndicate. Three syndicates followed in 2020: the new issue of the first 15-year Federal bond, the large-volume increase of a 30-year Federal bond and the new issue of the first (10-year) Green Federal bond. In 2021, two further bonds were issued via syndicate: a 30-year Federal Bond and the second 10-year Green federal bond.

The one-off issues planned by the Federal Government are generally announced at the end of each year in its annual preview for the following calendar year. Since 2013, this annual preview has also included a detailed issuance calendar for the forthcoming year complete with exact auction dates so as to enable investors to plan their activities with even greater certainty.

To a far lesser extent, the Federal Government also obtains funding from promissory notes concluded individually with financial institutions on a sporadic basis as well as German Government securities holdings sold on the secondary market following an auction.

Issuance volume (€ billion) of German Government securities

The noticeably increased share of money market securities in the auction volume in 2009 was almost continuously reduced in the following years and reached a minimum by the discontinuation of 12-month Bubills in 2017. With the introduction of a new issuance pattern and thus increases in 6-month Bubills, since 2018 the share of money market securities has recovered to the higher long-term average level of around a quarter of the total auction volume.

Compared with the quantum leaps on the money market, the issuance volume of the nominal classic capital market securities of the Federal Government hardly changed, even in 2020. With the exception of Bobls (-€1 bn), there were only minimal increases of between €2 bn and €5 bn in 2020. In 2021, auction volumes of Schatz increase by €8 bn and of Bobls by €9 bn, while €1 bn less Bund10 is planned. The volume of Bund30 incl. syndicate will be € 1.5 bn below the previous year's value at the end of 2021.

Since 2020, the Federal Government has covered the majority of its additional financing needs on the capital market through new financing instruments. The 7-year and 15-year Federal bonds issued for the first time in 2020 will be followed by a new issue of almost the same volume in 2021, each.

The issuance of Green Federal securities in 2020, on the other hand, was already planned in 2019. With the successful premieres of the first 10-year Green Federal bond and the first Green Federal note, a total volume of € 11.5 bn could be placed in 2020. Two more Green Federal securities were issued in  2021. The first 30-year Green Federal bond was issued via syndicate in May 2021 with a volume of € 6 bn. A second ten-year Green Federal bond was issued in September, with a reopening on 20 October 2021, amounting to a total issuance volume of € 6.5 bn.

Only auctions and syndicates that have already been conducted are included in this analysis of issues. Increases exclusively into own holdings, as in April 2020, or of conventional twin bonds simultaneously to the issue of Green Federal securities are not taken into account.

Structure of issuance volumes (%) of German Government securities

The composition of the issuance volume (auctions and syndicates) from 2014 to 2019 shows a relatively stable pattern. The financing of the governmental aid measures initiated to cope with the Covid-19 pandemic already required a significant expansion of the issuance volume in the course of 2020. Just as in the challenging financial market situation of 2009, the financing needs that arose in the short term were primarily met by a significant increase in money market issuances.

Compared to 2019, the share of Bubills in the issuance volume of all securities more than doubled in 2020 from around 21 % to 45 %. In 2021, money market securities, which now only have a maturity of 12 months, will account for more than half of the total auction volume of all Federal securities.