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Germany auctioned €3.9 billion at an average yield of minus 0.01 per cent, Bloomberg reports.
The sale drew almost twice the number of bids that had been allotted, with 25 of the Federal Finance Agency's 39-member group taking part in the process.
David Schnautz, a fixed-income strategist at Commerzbank AG in London, told the news provider this was a positive outcome for the German taxpayer but stressed the role investor anxiety had played in the auction.
He said worried traders were "donating some of their money to Germany just to make sure they get it back".
"It just underpins how nervous the overall market is," he added.
President Nicolas Sarkozy of France met with German chancellor Angela Merkel to begin eurozone crisis talks today, with financial liquidity in the banking sector still a concern.
Posted by Greg Secker
