Israel Bonds Drop on Bets Faster Inflation to Spur Higher Rates
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Israel’s 10-year bond fell, pushing the yield to the highest level in three weeks, as rising food and energy prices spurred bets the central bank will step up the pace of rate increases to curb inflation. The shekel gained.
The Bank of Israel, which left its benchmark lending rate at 3 percent on April 24, has increased rates by 2.5 percentage points since August 2009, in an attempt to tame inflation that accelerated to 4.3 percent in March. Strauss Group Ltd. the country’s biggest maker of coffee and confectioneries will lift prices in the coming weeks to reflect higher costs, it said today. Gas prices rose 3.1 percent May 1.