Yikes

This doesn't look good.

FRANKFURT—A German government debt auction drew some of the weakest demand since the introduction of the euro, signaling diminishing investor appetite for even the safest euro-zone assets amid Europe's worsening debt crisis.

The German government was able to sell only €3.644 billion ($4.92 billion) of the €6 billion in 10-year bunds on auction for an average yield of 1.98%.

Germany couldn't find buyers for all of its bonds?

My take: I think this is a vote of no confidence in the Euro, not Germany. If you bought German bonds, they would be denominated in Euros. If the Euro takes a dive, then a 2% return on the bond won't be nearly enough to make up for the loss due to the currency. Germany is getting dragged down by the toads in the Eurozone.