German 10-year bond yield turns negative for the first time since October 2016

German 10-year government bond yields moved into negative territory on Friday for the first time since October 2016.

At the same time, data from the German Federal Statistics Office (Destatis) in February indicated that the country had narrowly avoided a recession in the fourth quarter of 2018, with economic growth of 0.0% over the previous quarter.

In January, German gross domestic product (GDP) grew by 1.5% in 2018, compared to 2.2% in 2017. Even though it was the weakest growth registered by the government, it was the largest gain in GDP in the year. Germany in five years, Destatis noted that its economy had further progressed for the ninth consecutive year.

The uncertainty surrounding Britain's exit from the European Union adds to the slowdown in Germany. In the latter case, the European Union agreed to postpone the UK's withdrawal from the UK, but said the length of the delay would depend on Parliament approving Prime Minister Theresa's agreement. May next week on Brexit.

All of these factors seem to add to the caution of investors in the region. Earlier this month, the eurozone's central bank reduced its growth forecast for 2019 to 1.1% from 1.7% previously.

The president of the European Central Bank, Mario Draghi, warned that there had been a "considerable moderation in economic expansion that will continue until the current year."