Greece won a vote of confidence from financial markets when investors snapped up a government bond issue yesterday, easing fears that its debt crisis could prevent it from raising money. Athens sold €5bn ($6.8bn) in 10-year bonds and received orders for three times that amount.

The bond issue was evidence of optimism in the markets that the Greek government will avoid defaulting on its debt repayments. A few weeks ago it would have struggled to raise money in the capital markets.

However, the interest rate the country has been forced to pay to attract investors is one of the highest Greece has had to pay for a 10-year bond since it joined the euro in 2001. Currency strategists said such punitive rates were not sustainable.

The coupon interest rate on the bond was 6.25 per cent, about 2 percentage points more than Portugal – seen as the next weakest eurozone country – is paying and double the rate paid by Germany, Europe's biggest economy.

“We have re-opened Greek government issuance after a very critical period,” said Petros Christodoulou, head of the country's debt management agency. “We're aiming for orderly market conditions from now on.”

Investors are likely to remain wary because Greece will have to raise more money in the capital markets. Athens needs €10bn to refinance debt and meet interest payments in April.