U.K. Q1 GDP contracted much more than expected, falling 1.9% q/q and 4.1% y/y, versus our survey median estimates for -1.6% and -3.8% respectively, highlighting the severity of the U.K. recession at the beginning of the year. Data compares to GDP declines of 1.6% m/m and 2.0% y/y in Q4 of 2009. Service output fell 1.2% q/q, the largest fall since Q3 of 1979, and was down 2.1% y/y. Total industrial production declined by 5.5% q/q, the largest quarterly drop since records began in 1948, emphasizing the very dire state for the sector. Meanwhile, manufacturing output fell by an even sharper 6.2% q/q , which was also the worst ever on record. Overall, a very dire Q1 report, which has underpinned Gilt futures slightly, though better than expected March retail sales offer a bit of counterbalance, and continued concern over U.K.'s rising debt levels continue to add significant downward pressure.