May 19, 2026

First quarter GDP surprises on the upside in Japan, reaching +2.1% annualized

International

In Japan, the preliminary GDP (Gross Domestic Product) figure for the first quarter of 2026 was released last night (early morning local time), and it surprised on a positive note. The consensus among analysts projected annualized growth of 1.7% for the period, but the figure came in at 2.1%. This marks an acceleration compared to the previous quarter, where GDP grew at an annualized rate of 1.3%.

Yesterday, US Treasury yields remained largely unchanged. The 1-year Treasury note closed at 3.78%, down from 3.81% on Friday, while the 3-year Treasury note closed at 4.12%, lower than the previous 4.14%. At the long end, the 10-year Treasury note remained unchanged at 4.59%.

Finally, the main stock indices closed mixed at the start of the week. The S&P 500 fell 0.1%, while the Nasdaq declined 0.5%. The Dow Jones bucked the trend, rising 0.3%. Year-to-date, the indexes have gained 8.1%, 12.3%, and 3.4%, respectively.

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