Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Israel 2026 Bond Yield Drops to 1-Week Low as U.S. Sales Slow

Don't Miss Out —
Follow us on:

June 13 (Bloomberg) -- Israeli 2026 government bonds rose, pushing the yield to the lowest level in more than a week, after a report showing weaker U.S. retail sales stoked concern the world’s largest economy is cooling.

The yield on the 6.25 percent notes due October 2026 declined one basis point, or 0.01 percentage point, to 4.9 percent, the lowest since June 5, at the close in Tel Aviv. The one-year break-even rate, the yield difference between the inflation-linked bond and fixed-rate government bonds of similar maturity, fell four basis points to 246, implying an average annual inflation rate of about 2.46 percent.

Treasuries rose after retail sales in the U.S. fell in May for a second month as slower employment and subdued wage gains damped demand. About 40 percent of the Israel’s gross domestic product is made up of exports, with Europe and the U.S. the largest markets.

“Yields retreated at the end of the trading day tracking their U.S. counterpart on weak economic data, increasing concern over a recovery in the global economy,” said Sagie Poznerson, head of trading at Leader Capital Markets Ltd. in Tel Aviv.

Economic growth in Israel is expected to slow to 3.1 percent this year from 4.8 percent in 2011, according to central bank estimates. One-year interest rate swaps, an indicator of investor expectations for the benchmark rate in the period, increased one basis point to 2.26 percent.

The Tel Aviv Bond 40 Index, which measures inflation-linked and fixed-rate corporate bonds, declined 0.4 percent to 263.48. The shekel appreciated 0.2 percent to 3.8721 a dollar at 5:38 p.m. in Tel Aviv, taking this month’s gain to 0.9 percent.

The yield on the 5.5 percent Mimshal Shiklit notes due January 2022 rose one basis point to 4.44 percent.

To contact the reporter on this story: Sharon Wrobel in Tel Aviv at swrobel4@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.