Germany succeeded and was able to pass the auction-test after the several credit rating downgrades seen on Friday, where the nation managed to sell two-year bonds on lower yields and stronger demand, which supported the sentiment to remain positive and the euro to extend the gains recorded earlier today, but still eyes will remain in on the critical Greek debt-negotiations.

Germany sold 3.44 billion euros of 0.25% 2-year notes due in December 2013, compared with the maximum target of 4.0 billion euros. Yields on the bonds fell to 0.17% from 0.29% recorded an auction earlier, while the bid-to-cover ratio improved to 2.2 times the quantity offered compared with the previous 1.43 times recorded in the December auction.