The interest France pays on its debt also fell on the secondary market, while German yields remained stable, so the spread between French bonds and the bund an indicator followed keenly by President Nicolas Sarkozy's government as a sign of market confidence narrowed significantly.

The bond issue was the last of the year for France and went better than expected, after a period in which France's triple-A rated debt has been given a rough ride by the markets.

Each new French issue was oversubscribed by a factor of between two and four, and on the secondary market the interest rate on French bonds fell to 3.103 percent from 3.38 at Wednesday's close.

France raised 595 million euros in bonds due to mature of October 25, 2017 at a rate of 2.42 percent.

Longer term, it raised 1.571 billion euros in bonds to mature on October 25, 2021 at a rate of 3.18 percent, down from 3.22 percent in the last comparable auction last month.