Investors ditched shares on Monday and fled to the safety of bonds while the Japanese yen hovered near a six-week high as risk assets fell out of favor on growing fears about a U.S. recession, sending global yields plunging.

U.S. stocks futures fell, with E-minis for the S&P 500 skidding 0.5 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.4 percent to a one-week trough in a broad sell-off in equities in the region.

Japan’s Nikkei tumbled 3.2 percent to the lowest in two weeks, South Korea’s Kospi index declined 1.6 percent while Australian shares faltered 1.3 percent.

Chinese shares also declined with the blue-chip CSI 300 index down 0.8 percent.

On Friday, all three major U.S. stock indexes clocked their biggest one-day percentage losses since Jan.3. The Dow slid 1.8 percent, the S&P 500 was off 1.9 percent and the Nasdaq dropped 2.5 percent.

Concerns about the health of the world economy heightened last week after cautious remarks by the U.S. Federal Reserve sent 10-year treasury yields to the lowest since early 2018.

U.S. 10-year treasury yields were last 1.9 basis points below three-month rates after yields inverted for the first time since 2007 on Friday. Historically, an inverted yield curve – where long-term rates fall below short-term – has signaled an upcoming recession.

“Growth, and bonds/yield curves, will be the only thing stocks should be focused on going forward and it’s very hard to envision any type of rally until economic confidence stabilizes and bonds reverse.”

Compounding fears of a more widespread global downturn, manufacturing output data from Germany showed a contraction for the third straight month. And in the United States, preliminary measures of manufacturing and services activity for March showed both sectors grew at a slower pace than in February, according to data from IHS Markit.

National Australia Bank’s yield curve recession modeling is pointing to a 30-35 percent probability of a U.S. recession occurring over the next 10-18 months.

“The risk of a U.S. recession has risen and is flashing amber and this will keep markets pricing a high chance of the Fed cutting rates,” said London-based NAB strategist Tapas Strickland.

As bonds rallied on Monday, yields on 10-year Japanese government bonds slumped to minus 9 basis points, the weakest since September 2016. Australian 10-year year yields plunged to a record low of 1.754.

Some analysts, such as ING’s Rob Carnell, advised against rushing to place bets on the yield inversion.

POLITICAL HEADWINDS

Much of the concerns around global growth is stemming from Europe and China which are battling separate tariff wars with the United States.

Politics was also in focus in the United States and Britain.

A nearly two-year U.S. investigation found no evidence of collusion between Donald Trump’s election team and Russia, in a major political victory for the U.S. President as he prepares for his 2020 re-election battle.

Political turmoil in Britain over the country’s exit from the European Union also remains a drag on risk assets.

On Sunday, Rupert Murdoch’s Sun newspaper said in a front page editorial British Prime Minister Theresa May must announce on Monday she will stand down as soon as her Brexit deal is approved.

The British pound was a shade lower at $1.3198 after three straight days of wild gyrations. The currency slipped 0.7 percent last week.