On Wednesday, April 23, 2025, the Federal Republic of Germany increased the 10-year federal bond issued on January 8, 2025, maturing on February 15, 2035, through a tender process. The additional amount was 3.049 billion euros, which is slightly below the targeted goal of 4 billion euros, including the market maintenance rate.
Bond Details
- Interest Rate: The bond has an interest rate of 2.50%.
- Maturity: The bond matures on February 15, 2035.
- Interest Payments: Interest payments are made annually on February 15, with the interest period starting on January 10, 2025. The first interest payment is scheduled for February 15, 2026, calculated for 401 days.
- ISIN: The bond has the ISIN DE000BU2Z049.
- Current Volume: The current bond volume after the increase is 27.049 billion euros, as the previous volume was 24 billion euros.
Significance for the Bond Market
The increase of this bond is of great significance for the bond market, as it affects liquidity and supply in the market. Such measures can influence the interest rate curve and thus affect the investment decisions of private investors and savers. Additionally, the increase can also influence the demand for other bonds by adjusting the interest level in the market.
Timeline of the Tender Process
- Announcement Day: Tuesday, April 22, 2025.
- Submission of Bids: Wednesday, April 23, 2025, from 8:00 AM to 11:30 AM Frankfurt time.
- Inclusion in Exchange Trading: Wednesday, April 23, 2025.
- Value Date: Friday, April 25, 2025.
This increase shows that the government is still actively involved in the bond market and is adjusting its financing strategy to meet market demand and optimize financing costs.