What is a German Bund?

A bund is issued by Germany's federal government to finance outgoing expenditures, much like the U.S. does when it issues T-bonds. Essentially, they represent loans to the German federal government that are auctioned off in the primary market and traded in the secondary market .

Why do German governments issue bunds?

Bunds account for about 50% of the German government's outstanding debt, underscoring their importance in government funding. By issuing bunds and other long-term securities, German authorities obtain a more stable source of financing, thereby reducing the need to frequently roll over debt.

Who were the German-American Bund?

German-American Bund, also called (1933–35) Friends Of The New Germany, American pro-Nazi, quasi-military organization that was most active in the years immediately preceding the United States’ entry into World War II. The Bund’s members were mostly American citizens of German ancestry.

What is a bund curve?

Federal bonds (Bund) with maturities of 7 to 30 years form the middle to long end of the Bund curve. More than 60 % of the Federal government's debt portfolio consists of bonds in this maturity segment. Approx. 40 % of this is accounted for by 10-year bonds. Federal bonds are the most important financing instruments for the Federal government.