The central bank said it took in €3.916 billion ($5.17 billion) in exchange for benchmark 10-year Bunds at an average rate or yield of 2.87 percent after receiving bids worth a total of €6.29 billion.
Late last year, three German issues of various maturities were under subscribed amid heightened tension on sovereign debt markets owing to problems in Ireland.
Investors are also wary of debt issued by Belgium and Portugal, and had begun to worry that Germany might have to stump up more cash to help bail out eurozone countries with weak finances.
Spokesman Jörg Müller from the German Finance Agency, which manages debt for Europe's biggest economy, said: "Today's result constitutes a robust start to 2011."
Germany plans to issue bonds and shorter-term treasury securities worth a total of €302 billion this year, including €54 billion worth of Bunds.
In Paris meanwhile, HSBC bank told news agency AFP that the first issue by the eurozone of bonds to fund its bailout of Ireland attracted demand of nearly four times the offer, with €19 billion bid for €5 billion worth of bonds.