The ECB has missed its goal of keeping price growth "below but close to 2%" for a decade despite massive money printing, negative rates on deposits and subsidised loans to banks.
Inflation in the 19 countries sharing the euro slipped to 1.9% in June from 2.0% in May, in line with forecasts in a Reuters poll and right on the ECB's target of "below but close to 2%".
Germany's 10-year Bund yield, which is closely correlated with Treasuries, fell nearly 3 basis points to -0.234%, the lowest since May 7, falling below lows hit after Friday's US jobs data.
The deal came as a test for euro zone rates before the ECB meeting, ING said.
As the economy rebounds and confidence improves, some policymakers are making the case for the ECB to start giving up its emergency measures and revert to more traditional forms of stimulus.
"We are committed to preserving favourable financing conditions. It's far too early and it's actually unnecessary to debate longer-term issues," Lagarde said on Friday.
The aggregate growth of the 19 countries sharing the euro currency is likely to be 4.3% this year and 4.4% in 2022, the European Union's executive arm said, revising upwards its forecast from February of 3.8% growth in both years.
The forecast brings the Commission closer to the International Monetary Fund, which last month said it expected 4.4% growth in the euro zone this year.
The end-April negative-yield bonds accounted for almost 60% of a total market worth roughly 8.9 trillion euros, the lowest share since May last year.
Germany's benchmark 10-year Bund yield was last trading at -0.23%. Last week it rose almost 6 basis points in its biggest weekly rise in more than two months.
Bets that US stimulus would boost inflation and growth pushed government bonds worldwide to their worst performance in years in February. Central banks so far have appeared relatively sanguine about the rise in bond yields.
On Thursday, Germany's 10-year yield was down around 3 basis points at -317% at 1610 GMT, after rising 5 basis points on Wednesday.
"The bond is aimed to repay the maturing public debt ... and soothe the effects of the coronavirus crisis," Besimi said at a news conference carried live on Facebook.
"This rate, compared with others in the region, shows that North Macedonia remains attractive for investors," he said, adding the demand had doubled the amount on offer.
Lagarde also called on European Union leaders to kick start the bloc's 750 billion euro Next Generation EU spending package as some economic restrictions could remain in place until the second half of the year.
Other euro zone markets were quiet, though Germany's 30-year borrowing costs briefly turned positive and euro zone forward inflation swaps extended their recent rise.
After Wednesday's rally, Italian BTPs are flat, with investors in a 'wait and see' mode waiting for further developments on the government crisis.
Italy's 10-year bond yield was up 8.5 basis points at 0.629%, after hitting its highest since Dec. 2.
Some headlines are weighing heavily on Italian government bond prices. Market is worried about any development that could lead to a euro-sceptic policy in Italy.
The market trend shifted abruptly in Europe as Wall Street opened and expectations of a multi-trillion-dollar stimulus plan lifted US 10-year notes yields to 1.134%.
Germany's 10-year Bond yield reversed earlier falls and rose to -0.491%, its highest in two months.