In a sign that investors are fleeing to safety with no end to the current eurozone debt crisis in sight, the yield on a new offering of German 10-year "Bunds" maturing in September 2021 fell to a record low of 1.8 percent, the Bundesbank said in a statement.

With inflation in the eurozone's biggest economy currently at an annual rate of 2.4 percent, that means investors will make a loss when buying the bonds.

Demand for the offering was strong, with investors bidding for a total 6.34 billion euros ($8.6 billion) in bonds while only 5.0 billion euros worth was on offer.

Copyright AFP (Agence France-Presse), 2011