Federal Treasury Note

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Federal treasury notes (“Treasures”) are federal securities and thus bonds of the Federal Republic of Germany .

General

Since they are only issued ( issued ) at certain times , they count as one-off issues. They have a fixed nominal interest rate ( coupon ) that is paid annually. At two years, they have the shortest maturity of the federal government bonds listed on the stock exchange .

meaning

Federal Treasury notes are used for short- to medium-term liquidity supply to the Federal . For the federal government, they are an important financing instrument, because their share of the total issue volume of the federal government will make up almost 30% in 2017 and thus exceed the respective shares of the other federal securities .

Technically, federal treasury notes can be traded as book- entry securities by entering them in the federal debt register , whereby the investor receives a co-ownership share in the collective securities portfolio in accordance with Section 6 (1) DepG .

Like all federal securities, federal bonds are classified as hand- safe securities .

With a term of 2 years, they are ideally suited for professional investors for the fulfillment of exchange futures transactions , the delivery of the so-called Schatz Future at Eurex .

Issuance process and trading

New federal treasury notes (new issues) are issued by the Federal Republic of Germany - Finanzagentur GmbH with technical support from the Deutsche Bundesbank , usually on a quarterly basis (in 2015 e.g. February, May, August, November) exclusively in the so-called tender procedure . Only banks that belong to the so-called Bund Issues group are entitled to purchase these securities directly in the auction. Other credit institutions and non-banks can instruct members of the bidding group to submit bids or purchase federal treasury notes after their issue on the stock exchange.

The volumes (issue quantities) of the individual auctions for federal treasury notes have been around 4 to 5 billion euros for several years. A new issue follows in the following two months so-called increases in the same security (same WKN or ISIN ) in a similar amount, so that a federal treasury note can ultimately reach a volume of up to 15 billion euros.

Federal treasury notes are introduced into trading on the German stock exchanges , the so-called secondary market . They can be purchased by anyone there and are among the most liquid bonds that the federal government issues. In 2014, their average outstanding volume was 107 billion euros.

Web links

See also

Individual evidence

  1. Declaration of Federal Treasury Instructions , website of the Finance Agency, accessed on April 1, 2015.
  2. Federal Treasury Instructions ("Treasures"). Federal Republic of Germany Finanzagentur GmbH, accessed on July 20, 2017 .
  3. Federal tender procedure , website of the Finance Agency, accessed on April 1, 2015.
  4. Federal Government Issues Calendar , website of the Finance Agency, accessed on April 1, 2015.
  5. Federal issuance calendar ( Memento from September 23, 2015 in the Internet Archive ), auction overview as PDF (25.3 kB), accessed on April 1, 2015.
  6. Federal treasury instructions in FORUM: Federal securities - August 2010 , investor magazine of the finance agency (243 kB), accessed on April 7, 2015.