Germany sold 2.4 billion euros worth of government bonds maturing in 32 years time in an auction on Wednesday.
However demand was lacklustre and Berlin was not able to sell all the bonds it had on offer.
Analysts said that was because the rate of interest that investors will get is so low and it also reflected an upturn in confidence in shares based on better-than-expected recent company earnings.
The weak outcome mirrors that seen at an auction on 11 April when Germany launched a 10-year bond, and underscores how surging demand for the safety of the country’s bonds has pushed investment returns so low that some are reluctant to buy at current levels.
Nevertheless, Germany remains in a strong funding position. It has sold roughly half the debt it needs to this year and is able to borrow more cheaply and for a longer period of time than any other euro zone country.