Tender process

Federal bonds, Federal notes, inflation-linked notes and bonds, Federal Treasury notes and Treasury discount papers are usually issued by the Government in a tender process (auction process).

Only members of the Bund Issues Auction Group are able to acquire German Government securities directly in this process. The Deutsche Bundesbank's Bund Bidding System (BBS) is the technical platform used in this tender process.

Issuing bids

All regularly issued German Government securities are issued by the Federal Government in the tender process via the members of the Bund Issues Auction Group in a multi-price auction process.

During the auctions, the bids for German Government securities must be of a par value of no less than EUR 1 million or whole multiples thereof. In addition, the bids must include the price as a percentage of the par value at which the bidders are prepared to purchase the securities offered.

In principle, it is possible to issue multiple bids at different prices as well as non-competitive bids. The price bids for Federal bonds and five-year Federal notes (including those that are inflation-linked) must be expressed as full 0.01 percentage points, those for Federal Treasury notes as full 0.005 percentage points and those for Treasury discount paper as full 0.00005 percentage points.

Allotment and retention

The Federal Government applies a multi-price auction process, i.e. the bids accepted by the Federal Government are allotted at the price specified in the respective bid and not at a single price. Bids that are above the lowest accepted price are allotted in full, while bids that are below the lowest accepted price will not be considered. Non-competitive bids are allotted at the weighted average price of the bids accepted. The Federal Government reserves the right to reject all bids and to re-allot the bids at the lowest accepted price and non-competitive bids, i.e. only to allot a certain percentage.
For each auction, the government usually retains a certain nominal volume (retention quote), which can then be gradually introduced into the market as part of secondary market activities following the tender.

Auction deadlines

German Government securities are issued via the BBS on different days of the week depending on the type of security in question. All auctions run from 8.00 am to 11.30 am.

  • Placements of Treasury discount paper (money market) are regularly carried out on Mondays.
  • Inflation-linked securities, Federal Treasury notes and nominal seven-year Federal bonds are always issued on Tuesdays.
  • Tenders for Federal notes and nominal Federal bonds with maturity of 10 years and longer take place on Wednesdays.

Six bank working days before the tender deadline, the Deutsche Bundesbank issues a press release announcing the auction of the German Government securities, specifying the issuance volume and maturity. One day before the tender, the coupon and interest date are announced in the invitation to tender, which also takes the form of a press release.
On the auction day itself, members of the Bund Issues Auction Group can digitally issue their bids for the tender via the BBS between 8.00 am and 11.30 am Frankfurt time. Decisions on allotment are taken by the Finance Agency immediately after the end of the bidding and sent to the bidders via the BBS. The results are then published via news information services and this website.

Standardized process for issuing Federal Government securities, beginning with the announcement of the issuance calendar through to the settlement of the tender amount. Unlike in the standard process, the announcement period for issues of inflation-linked securities is not set at six bank working days before the tender, but can be flexibly defined by the Federal Government.