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Short-term yields rising above longer-term yields is usually a sign that markets think the risk of a credit event has increased.
Five-year yields were last 2 basis points higher at 7.45, while 10-year yields were 6 bps lower at 7.436 percent.
Bund futures were 80 ticks lower at 144.75, following Germany's outlook revision for Germany's rating to negative.
"Volumes are starting to pick up a bit, there's selling of Bunds across the board - by fast money, dealers and real money but there's no buying of the periphery," one trader said.
"I don't think this is the start of a bigger sell-off in Bunds, if the crisis gets worse then Germany is still going to be a safe haven."