Bon du Trésor à taux fixe et à intérêts précomptés (BTF) - Financial definition
Concise definition of the term Bon du Trésor à taux fixe et à intérêts précomptés
BTFs are Treasury bills issued by the French government bonds with maturities between and 12 and 51 weeks.
Comprehensive definition of the term Bon du Trésor à taux fixe et à intérêts précomptés
Characteristics
| Face value | 1 euro |
| Day count convention | Act/360 |
| Settlement | Secondary market: t + 1. |
| Primary market: settlement date of the issue | |
| Quoting mode: | In yield, rounded to three decimals (with a step of 0,5 basis points) |
Utilisation
BTFs are used to cover short term fluctuations in the state's Treasury, which essentially stem from time lags between the collection of revenue and the payment of expenses and debt service.
Issuance
BTFs are auctioned every Monday. A quarterly issuance calendar which specifies the maturities of the bills which will be auctioned is published by Agence France Trésor (AFT), the French Debt Management Office.