German Q1 GDP contracted 3.8% q/q. This was weaker than our median of -3.5% q/q and Q4 was revised down to 2.2% q/q. The economy contracted 6.9% y/y on a working day adjusted basis, after falling 1.8% y/y in the previous quarterly. Unadjusted data showed GDP down 6.7% y/y. The later timing of Easter this year will have distorted the numbers somewhat, but still, these are dismal numbers that highlight the extent of the recession. Forward looking indicators may be pointing to a stabilization, but the economy will remain weak for some time to come. The weaker than expected German number also mean there is the risk of a negative surprise with the Euro-Zone figures and data will back the arguments of those calling for more action from the central bank. Bund futures headed north after the release, after initially opening slightly down.