Israel 2016 Yield Drops on Bets Slower Growth to Spur Rate Cuts

Israel’s 2016 government bonds rose, pushing the yield to lowest level in almost a month, on bets slower economic growth will prompt the Bank of Israel to cut interest rates in the coming months.

The yield on the 2.5 percent notes due May 2016 dropped five basis points, or 0.05 percentage point, to 1.66 percent, the lowest since June 19, at the close in Tel Aviv. The yield on the government’s benchmark 4.25 percent bond maturing in March 2023 declined three basis points to 3.76 percent. The Israeli market is closed tomorrow for a holiday.