France raised over €9 billion in bond sales in the first issue since Francois Hollande took over as president, promising a change in economic policy.
The rates that France had to pay were lower for its shorter-term debt but slightly higher for longer-term issues, treasury data showed.
Paris borrowed a total of €7.996 billion via bonds that mature in two, three and five years at rates that were lower than those offered during the last similar operation on April 19.
A breakdown of some of the sales showed that fixed-rate, annual interest debt which matures in two years found buyers at an interest rate of 0.74%, compared with 0.85% in the last auction.
Similar five-year debt saw rates at 1.72%, compared with 1.83% in the earlier operation, with the treasury underscoring that represented the lowest comparable rate since the euro zone was founded. The treasury also sold bonds with maturities of 10, 11 and 15 years, and raised €1.182 billion, more than an initial target of €800m.
But it had to offer slightly higher rates of interest, agreeing to a level of 1.25% for the 10-year bonds, compared with 0.97% during the last such operation on March 15. French 15-year bonds found buyers at 1.45%, up from 1.28% the last time around.
In Spain, the interest rate, or yield on Madrid's 10-year government bonds soared to a peak of 6.51% today, a danger level widely considered too high for the state to afford over the longer term.
And in Germany, officials paid the lowest rate in the country's modern history to borrow for 10 years, as investors scrambled to snap up debt issued by Europe's top economy, seen as a safe-haven.
Germany paid an average rate of 1.47% at an auction of 10-year bonds, or Bunds, considered the gold standard of euro zone debt, said the German Finance Agency, which organised the sale. This compared with a yield of 1.77% at the last such auction last month, which was already a record low.
The worsening Greek debt crisis has raised tension on euro zone sovereign debt markets, with investors holding out for higher rates to lend money to countries seen as potentially risky debtors.
IMF praises reforms in Italy as model for Europe
The International Monetary Fund heaped praise on radical budget and economic reforms enacted in debt-burdened Italy by Prime Minister Mario Monti, describing them today as a "model" for Europe.
The IMF director for Europe Reza Moghadam said after an annual assessment and referring to Monti's crash programme in the last six months: "The progress is really a model when considering progress across Europe."
Ms Moghadam also said Italy has made "notable progress" toward improving its financial outlook in the last six months but added that work needs to be done on growth.
She also added that Italian banks needed to reinforce their capital.
Moody's ratings agency this week downgraded 26 Italian banks.
Premier Mario Monti said the IMF's mission shows how much Italy "has done and needed to do to put its public accounts on a safe basis and launch incisive reforms."
Mr Monti was brought in last November to head a government of technocrats aimed at preventing Italy from succumbing to the euro zone's debt crisis.
