The German Government has reported a surge in the bonds, this week. However, due to the potential debt downgrades that Greece has been facing, its two-year bonds fell for a second week.

“Price moves have been mainly due to risk aversion, especially sovereign risk in the euro zone”, said Patrick Jacq, a senior fixed-income Strategist in Paris at BNP Paribas SA. “We also had renewed weakness in stock markets and that also offered core markets room to shine”, he added.

According to Bloomberg Generic Prices, the two-year yield was at 0.95 percent after earlier slipping to 0.93 percent, the lowest since at least 1990.

“There seems to be no end to the negative news flow surrounding Greece”, Viola Stork, an Economist at Helaba Landesbank Hessen-Thueringen in Frankfurt, wrote in a research note. “Good fundamental data currently appears to have a rather short-term effect, generally outweighed by uncertainty surrounding Greece and the heightened risk aversion”.

Luxembourg Finance Minister Luc Frieden yesterday exclaimed that euro- region countries are obliged to extend an aid to Greece as the EU is based on solidarity.

According to all 51 economists surveyed by Bloomberg, the European Central Bank, which will meet on March 4th, will keep the main refinancing rate at 1 percent.