IHS Markit’s PMI survey published Friday revealed that Germany’s manufacturing sector contracted for the third consecutive month in March, with output development nearing a six-year low.

German government 10-year bond, an critical benchmark for European fixed earnings assets, is viewed as a protected-haven for investors. In occasions of uncertainty and difficult marketplace atmosphere, investors have a tendency to move their investments from riskier assets into protected-havens like gold and German government bonds. The bond yields hitting adverse territory shows there is a increasing demand for the 10-year paper due to the ongoing uncertainty in the euro zone economy getting fueled from a slowdown in Germany, a deadlock amongst politicians on Brexit amongst other folks.

Meanwhile, information from Germany’s federal statistics workplace (Destatis) in February showed that the nation narrowly avoided a recession in the fourth-quarter of 2018, with the economy expanding . % from the earlier quarter.

In January, German’s gross domestic solution (GDP) grew 1.five % in 2018, compared with two.two % development in 2017. Even though it was Germany’s weakest development in 5 years, Destatis noted that the economy had nevertheless grown for the ninth year in a row.

Adding to the slowdown in Germany is the uncertainty surrounding Britain’s exit from the European Union. In the most up-to-date, the European Union agreed to an extension to the date of the U.K.’s withdrawal from the bloc, but mentioned the length of the delay would rely on irrespective of whether Parliament approves Prime Minister Theresa May’s Brexit deal subsequent week.

All of these elements appear to be adding to investors getting cautious in the area. Earlier this month, the euro zone’s central bank slashed its development forecast for 2019 to 1.1 % from an earlier forecast of 1.7 % produced in December.

European Central Bank President Mario Draghi warned that there had been a “sizable moderation in financial expansion that will extend into the present year.”