Federal bonds are the most important financing instruments for the Federal government. This applies equally in the primary and secondary market. Their share of the auction volume regularly amounts to a fifth, and in trading they account for about half of the volume.
Current Benchmark Bonds
Conventional Securities
Security | Maturity | Coupon | Outstanding | Last Issuance | ISIN |
---|---|---|---|---|---|
Bund7 | 15.11.2030 | 2.40% | 16.0 € bn | 07.02.2024 | DE000BU27006 |
Bund10 | 15.02.2034 | 2.20% | 14.0 € bn | 21.02.2024 | DE000BU2Z023 |
Bund15 | 15.05.2038 | 1.00% | 23.75 € bn | 28.02.2024 | DE0001102598 |
Bund30 | 15.08.2054 | 2.50% | 11.5 € bn | 05.03.2024 | DE000BU2D004 |
Issuance
Federal Treasury notes will once again account for the largest share of capital market securities issued in 2024, with an issuance volume of € 76 bn. At € 70 bn, 10-year Federal bonds will account for the second-largest share. This is followed by Federal notes with a planned issuance volume of € 48 bn. 30-year Federal bonds are planned with an issuance volume of € 22 bn, plus several syndicates. 15-year Federal bonds are to be issued in the amount of € 16.5 bn (2023: € 12 bn). The volume of 7-year Federal bonds will decrease to € 15 bn from € 31 bn in 2023.
Auctions of 15- and 30-year Federal bonds will continue to be carried out in part as part of multi-ISIN auctions.
Upcoming Auctions
Date | Issuance | Volume | Coupon | Maturity |
---|---|---|---|---|
13.03.2024 | Bund (R) DE000BU2Z023 | 4.5 € bn | 2.20% | 15.02.2034 |
20.03.2024 | Bund (R) DE0001102572 | 1.0 € bn | 0.00% | 15.08.2052 |
20.03.2024 | Bund 30 Y (R) | 1.0 € bn | - | - |
Issuance dates of all Federal securities
Latest Auction Results
Date | Issuance | Bid/Cover | Volumes | Yield |
---|---|---|---|---|
05.03.2024 | Bund (R) DE000BU2D004 | - | (A) (B) | 2.52% |
28.02.2024 | Bund (R) DE0001102598 | 2.9 | (A) (B) | 2.60% |
28.02.2024 | Bund (R) DE0001135432 | 3.0 | (A) (B) | 2.65% |
BUND: Federal bond with maturity of 7, 10, 15 or 30 years | Bid/Cover Ratio: Ratio of offered and allocated volume
Issuance results of all Federal securities
Issuance History & Progress
Current year vs. previous year
Issue volumes incl. reopenings in own holdings and syndicates carried out (excl. planned). Bund 10 includes 10-year, 7-year and 15-year Federal bonds.
Auction System
Bund10 | Bund15 | Bund30 | |
---|---|---|---|
New issues | 2x per year | 1x per year | approx. every 2 years |
Auction dates | Wednesdays, 8 to 11:30 a.m. | ||
Typical Maturities & Interest Dates | 15 Feb./ 15 Aug. | 15 Mai | 15 Aug. |
Trading
Trading in 10-year Federal bonds regularly accounts for more than half of the total trading volume of all Federal securities. However, in 2022, they accounted for only 45 % or € 2,997 bn. This sum already includes the turnover of the 7- and 15-year Federal bonds newly introduced in 2020. In general, 10-year Federal bonds are the flagship of secondary market trading in Federal securities even without this sub-total.
In 2022 a volume of € 624 bn or exactly 9 % of the turnover of all Federal securities was traded in 30-year Federal bonds.
TRADING TURNOVER OF ALL FEDERAL SECURITIES
Stripping
"Stripping" was introduced for 10- and 30-year federal bonds in 1997. The 7- and 15-year Federal bonds issued for the first time in 2020 are also stripable in principle. However, the separation of the bonds into capital claims and individual interest claims is only possible if the bonds have a coupon greater than zero. Both "strips" can then be traded separately (from € 50,000, minimum nominal amount € 0.01). The separation into capital and interest claims is carried out for the holder of a bond by the respective custodian. The reconstruction of a bond from interest and principal strips is also possible, but reserved for credit institutions for their own holdings. Interest rate strips with the same maturity are combined under one ISIN. It is not possible to combine strips of different bonds.
Since 2013, the maturity and interest dates chosen for Federal bonds are 15 February, 15 May and/or 15 August and 15 November, which are also the stripping dates. Older bonds have stripping dates of 4 January, 4 July and 4 September.
Bonds Outstanding
Federal bonds are also the most important financial instruments for the Federal government in the secondary market. At the end of 2023, a total of € 1179.75 bn in 7-, 10-, 15- and 30-year Federal bonds were outstanding. This corresponds to approx. 60 % of the Federal government's debt portfolio, with the 10-year bonds alone accounting for a share of around 40 %.
Current Share of Federal Bonds in the Volume of all Federal Securities Outstanding
The share of 10-year Federal bonds (Bund 10) includes the 7- and 15-year Federal bonds.
Current Outstanding 7-, 10-, 15- and 30-Year Federal Bonds
Bond | Maturity | Coupon | Outstanding | Last Issuance | ISIN |
---|---|---|---|---|---|
Total volume | 1,179,500 € mn | - | |||
2024 (2054) Bund | 15.08.2054 | 2.50% | 11,500 € mn | 05.03.2024 | DE000BU2D004 |
2024 (2034) Bund | 15.02.2034 | 2.20% | 14,000 € mn | 21.02.2024 | DE000BU2Z023 |
2023 (2033) Bund | 15.02.2033 | 2.30% | 38,250 € mn | 05.07.2023 | DE000BU2Z007 |
2023 (2033) Bund | 15.08.2033 | 2.60% | 30,500 € mn | 29.11.2023 | DE000BU2Z015 |
2023 (2030) Bund | 15.11.2030 | 2.40% | 16,000 € mn | 07.02.2024 | DE000BU27006 |
2022 (2053) Bund | 15.08.2053 | 1.80% | 28,000 € mn | 14.02.2024 | DE0001102614 |
2022 (2038) Bund | 15.05.2038 | 1.00% | 23,750 € mn | 28.02.2024 | DE0001102598 |
2022 (2032) Bund | 15.02.2032 | 0.00% | 31,000 € mn | 21.10.2022 | DE0001102580 |
2022 (2032) Bund | 15.08.2032 | 1.70% | 28,000 € mn | 30.11.2022 | DE0001102606 |
2022 (2029) Bund | 15.11.2029 | 2.10% | 26,000 € mn | 31.05.2023 | DE0001102622 |
2021 (2052) Bund | 15.08.2052 | 0.00% | 30,500 € mn | 17.01.2024 | DE0001102572 |
2021 (2036) Bund | 15.05.2036 | 0.00% | 25,750 € mn | 02.08.2023 | DE0001102549 |
2021 (2031) II Bund | 15.08.2031 | 0.00% | 32,000 € mn | 02.11.2022 | DE0001102564 |
2021 (2031) Bund | 15.02.2031 | 0.00% | 28,000 € mn | 21.10.2022 | DE0001102531 |
2021 (2028) Bund | 15.11.2028 | 0.00% | 27,000 € mn | 21.10.2022 | DE0001102556 |
2020 (2035) Bund | 15.05.2035 | 0.00% | 23,750 € mn | 22.11.2023 | DE0001102515 |
2020 (2030) II Bund | 15.08.2030 | 0.00% | 33,500 € mn | 20.07.2022 | DE0001102507 |
2020 (2030) Bund | 15.02.2030 | 0.00% | 28,000 € mn | 21.10.2022 | DE0001102499 |
2020 (2027) Bund | 15.11.2027 | 0.00% | 22,000 € mn | 15.09.2020 | DE0001102523 |
2019 (2050) Bund | 15.08.2050 | 0.00% | 39,500 € mn | 16.08.2023 | DE0001102481 |
2019 (2029) Bund | 15.02.2029 | 0.25% | 29,500 € mn | 21.10.2022 | DE0001102465 |
2019 (2029) Bund | 15.08.2029 | 0.00% | 29,500 € mn | 21.10.2022 | DE0001102473 |
2018 (2028) Bund | 15.02.2028 | 0.50% | 28,500 € mn | 21.10.2022 | DE0001102440 |
2018 (2028) Bund | 15.08.2028 | 0.25% | 28,500 € mn | 21.10.2022 | DE0001102457 |
2017 (2048) Bund | 15.08.2048 | 1.25% | 37,500 € mn | 11.10.2023 | DE0001102432 |
2017 (2027) Bund | 15.02.2027 | 0.25% | 30,500 € mn | 16.04.2020 | DE0001102416 |
2017 (2027) Bund | 15.08.2027 | 0.50% | 32,500 € mn | 21.10.2022 | DE0001102424 |
2016 (2026) Bund | 15.02.2026 | 0.50% | 33,500 € mn | 21.10.2022 | DE0001102390 |
2016 (2026) Bund | 15.08.2026 | 0.00% | 32,500 € mn | 21.10.2022 | DE0001102408 |
2015 (2025) Bund | 15.02.2025 | 0.50% | 30,500 € mn | 21.10.2022 | DE0001102374 |
2015 (2025) Bund | 15.08.2025 | 1.00% | 30,500 € mn | 21.10.2022 | DE0001102382 |
2014 (2046) Bund | 15.08.2046 | 2.50% | 32,250 € mn | 24.01.2024 | DE0001102341 |
2014 (2024) Bund | 15.05.2024 | 1.50% | 22,500 € mn | 16.04.2020 | DE0001102358 |
2014 (2024) Bund | 15.08.2024 | 1.00% | 22,500 € mn | 16.04.2020 | DE0001102366 |
2012 (2044) Bund | 04.07.2044 | 2.50% | 30,500 € mn | 25.01.2023 | DE0001135481 |
2010 (2042) Bund | 04.07.2042 | 3.25% | 20,000 € mn | 28.02.2024 | DE0001135432 |
2008 (2040) Bund | 04.07.2040 | 4.75% | 21,500 € mn | 24.05.2023 | DE0001135366 |
2007 (2039) Bund | 04.07.2039 | 4.25% | 19,250 € mn | 01.03.2023 | DE0001135325 |
2005 (2037) Bund | 04.01.2037 | 4.00% | 28,250 € mn | 26.04.2023 | DE0001135275 |
2003 (2034) Bund | 04.07.2034 | 4.75% | 24,500 € mn | 16.04.2020 | DE0001135226 |
2000 (2031) Bund | 04.01.2031 | 5.50% | 21,500 € mn | 16.04.2020 | DE0001135176 |
2000 (2030) Bund | 04.01.2030 | 6.25% | 11,750 € mn | 16.04.2020 | DE0001135143 |
1998 (2028) II Bund | 04.07.2028 | 4.75% | 13,750 € mn | 16.04.2020 | DE0001135085 |
1998 (2028) Bund | 04.01.2028 | 5.625% | 17,000 € mn | 16.04.2020 | DE0001135069 |
1997 (2027) Bund | 04.07.2027 | 6.50% | 13,750 € mn | 16.04.2020 | DE0001135044 |
Total volume | 1,179,500 € mn |
Understanding Federal Bonds
Federal bonds are debt securities of the Federal Republic of Germany. They are available with maturities of 7, 10, 15 or 30 years from the date of issuance. Holders receive fixed annual interest payments (coupons) and repayment at full nominal value at maturity.
With original maturities of 7 to 30 years, Federal bonds offer the most long-term investment opportunities among Federal securities. They offer constant annual interest payments (called nominal interest or coupon) and repayment at full nominal value (price of 100 %) at maturity. This means that the returns that can be achieved with them can be calculated precisely at the time of the investment. They are therefore suitable for investors with a correspondingly long investment horizon.
Federal bonds are traded on the stock exchange. Investors can buy and sell them there on every trading day. However, price movements during the term must be taken into account.
New Federal bonds are always issued at a price close to 100 % and repaid at 100 % at maturity. Price fluctuations after purchase are only relevant if the Federal bonds are sold before maturity.
During the maturity period, changes in interest rates on the market ensure that their market price fluctuates daily. When purchased after reissue, i.e. during the maturity period, they are usually acquired at prices below 100 % or above 100 %. A purchase below 100 % leads to price gains if held until maturity. If purchased at a price above 100 %, price losses are incurred at maturity. The following rule applies:
If the market interest rate rises, the bond price falls - if the market interest rate falls, the bond price rises.
DEVELOPMENT OF INTEREST RATES ON THE BOND MARKET | PRICE DEVELOPMENT OF TREASURY DISCOUNT PAPER | EXPLANATory NOte |
↑ | ↓ | When bond market interest rates rise, prices fall |
→ | → | If the bond market interes rates are constant,prices remain unchanged |
↓ | ↑ | When bond market interest rates fall, prices rise |
Investors who correctly assess the future interest rate development on the bond market have the opportunity to make price gains. On the other hand, however, price losses can also occur. These vary depending on the remaining term to maturity and the amount of the coupon:
Federal bonds are suitable as a long-term investment for security-oriented investors. If they are held until the end of their maturity, they can be used to earn precisely calculable, regular income. Professional investors can bet on price gains with Federal bonds if they correctly forecast the development of interest rates on the bond market.
Issuer Risk
The Federal Republic of Germany is liable for the repayment of Federal bonds with its assets and tax revenues. Its ability to meet the payment obligations arising from federal bonds determines the issuer risk. This risk is considered to be extremely low.
Like all Federal securities, Federal bonds are gilt-edged.
Price Risk
The prices of Federal bonds are developing in the opposite direction to the interest rates on the bond market. In the event of a rise in interest rates, investors may suffer capital losses. This risk is significantly higher for 30-year Bunds (high) than for 10-year Bunds (medium). However, it can be eliminated by holding the Bunds until maturity.
Liquidity Risk
Federal bonds are one of the most heavily traded government bonds in the euro area. The risk of not finding a trading partner, i.e. not being able to sell them at any time, is extremely low. The Finance Agency and the Deutsche Bundesbank also maintain the market and, if necessary, act as trading partners on the market themselves.
Federal bonds are issued on dates published in advance. These issue dates and the planned issuance volumes are published in the form of an issue calendar at the end of the previous year for the entire following calendar year. The coupons of the individual Federal bonds, on the other hand, are not fixed until one bank business day before the respective issue. They are based on the current interest rate level on the bond market.
Banks and Savings Banks
Federal bonds can be purchased on each trading day at any bank or savings bank. There they can be held in a securities account and also sold again if required. In principle, there is neither a minimum investment amount nor a maximum amount for investing in Federal bonds. Credit institutions generally charge fees for the purchase, sale and safekeeping of bonds.
Finance Agency
Only Federal bonds issued by 21 August 2012 can be held in custody at the Finance Agency. While safekeeping here in a debt register account is free of charge, a securities commission is incurred for the Deutsche Bundesbank when selling before maturity. The annual interest payments are paid out to the reference account.
Discover More Topics
- Issuance Calendar
- Tradeable Securities
- Issuance Results
- Trading Volumes
- Overview Federal Securities
- Federal Notes
- Federal Treasury Notes
- Treasury Discount Paper
- Green Federal Securities
- Inflation-linked Securities
- Other Funding Instruments
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