Germany issued 10-year government bonds with a negative yield for the first time, on Wednesday, becoming the first euro area country to do so.

The coupon rate on the bond, known as the Bund, was zero percent. The German 10-year bonds are seen as the benchmark for European bond markets.

The country sold more than EUR 4 million at a yield of minus 0.05 percent at the auction, the Bundesbank said.

The sale reflects investors' willingness to own safe-haven debt amid the lingering concerns over the "Brexit" negotiations.

Negative rate imply investors holding the Bund will receive less than what they paid when the debt matures. In the current volatile environment, investors are increasingly willing to settle for lower return.