Israel Government Bonds - Yields Curve

COUNTRY • SUMMARY
ISRAEL

The Israel 10-Year Government Bond currently offers a yield of 4.555%. This yield reflects the return investors can expect if they hold the bond until maturity. Government bond yields are critical indicators of economic confidence and investor sentiment.

The yield spread between Israel 10-Year and 2-Year government bonds is 26.8 basis points (bp), reflecting the difference in yields between long-term and short-term debt.
Typically, long-term bonds carry higher yields than short-term ones.
Current observation: Yield Curve is flat in Long-Term vs Short-Term Maturities.

Israel Central Bank Rate stands at 4.50%, following the most recent adjustment in January 2024.

According to Standard & Poor's agency, the Israel credit rating is A.

The current quotation for Israel 5-Years Credit Default Swap is 106.96 basis points. Correspondingly, the implied probability of default is 1.78%.

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Israel Yield Curve

A Yield Curve is a graph that shows the relationship between interest rates (or yields) and different maturities of debt for a specific borrower, often government bonds. It typically plots yields on the y-axis and maturities on the x-axis, ranging from short-term to long-term bonds.

The shape of the yield curve gives investors insights into market expectations for interest rates, economic growth, and inflation. A normal yield curve, where long-term rates are higher than short-term, suggests economic growth, while an inverted curve, where short-term rates are higher, can indicate an upcoming recession.

Israel Yield Curve
Israel Government Bonds
7 December 2024

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Residual
Maturity
Annualized Yield Constant Maturity Zero Coupon Price Capital
Growth
of 1 Unit
Last
Update
Last Chg 1M Chg 6M Chg 12M Last Chg 1M Chg 6M Chg 12M
1 month 4.610% -13.5 bp -14.5 bp -30.5 bp 99.63 +0.02 % +0.02 % +0.03 % 1.003 05 Dec
3 months 4.366% -8.9 bp -5.1 bp -14.0 bp 98.94 +0.02 % +0.01 % +0.04 % 1.010 05 Dec
6 months 4.341% -6.2 bp -3.1 bp -3.1 bp 97.90 +0.03 % +0.02 % +0.02 % 1.021 05 Dec
9 months 4.312% -67.9 bp -6.1 bp +9.2 bp 96.88 +0.49 % +0.04 % -0.07 % 1.032 05 Dec
1 year 4.302% -6.7 bp -4.3 bp +20.2 bp 95.88 +0.07 % +0.04 % -0.19 % 1.043 05 Dec
2 years 4.287% -22.3 bp -15.0 bp +49.7 bp 91.95 +0.43 % +0.29 % -0.95 % 1.087 05 Dec
3 years 4.338% -25.9 bp -21.1 bp +55.9 bp 88.04 +0.74 % +0.61 % -1.60 % 1.135 05 Dec
5 years 4.348% -27.5 bp -27.7 bp +50.5 bp 80.83 +1.33 % +1.33 % -2.40 % 1.237 05 Dec
10 years 4.555% -26.6 bp -34.8 bp +51.9 bp 64.05 +2.56 % +3.37 % -4.86 % 1.561 05 Dec
20 years 4.698% -21.3 bp -34.1 bp +39.8 bp 39.92 +4.15 % +6.71 % -7.34 % 2.504 05 Dec
30 years 5.004% -17.1 bp -32.4 bp +44.5 bp 23.11 +5.00 % +9.68 % -11.96 % 4.326 05 Dec
Last Update: 7 Dec 2024, 0:15 GMT+0

Israel Yield History

This table presents the historical values of the yield curve, with data points collected at the end of each year.

By analyzing these values over time, one can observe trends and shifts in economic sentiment and monetary policy that impact investor expectations about future interest rates and economic growth.

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Government Bonds Yield (%)
Spread (bp)
Period 1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y 10Y - 2Y
Dec 2024 4.610 4.366 4.341 4.302 4.287 4.338 4.348 n.a. 4.555 5.004 26.8
Dec 2023 4.602 4.458 4.310 4.115 3.793 3.753 3.714 n.a. 3.974 4.619 18.1
Dec 2022 3.525 3.674 3.701 3.720 3.697 3.701 3.691 n.a. 3.599 3.828 -9.8
Dec 2021 -0.059 0.039 -0.010 0.011 0.038 0.182 0.424 n.a. 1.019 2.238 98.1
Dec 2020 0.118 0.039 0.020 0.027 0.055 0.163 0.273 n.a. 0.773 1.831 71.8
Dec 2019 0.209 0.168 0.107 0.136 0.182 0.236 0.354 n.a. 0.842 1.864 66.0
Dec 2018 0.304 0.397 0.340 0.555 0.573 0.830 1.250 n.a. 2.289 3.444 171.6
Dec 2017 0.197 0.109 0.139 0.119 0.131 0.183 0.726 n.a. 1.617 2.979 148.6
Dec 2016 n.a. 0.194 n.a. 0.162 n.a. 0.458 0.994 n.a. 2.068 n.a. n.a.

Israel Yield Analysis

Normally, longer-duration interest rates are higher than short-duration. So, the yield curve normally slopes upward as duration increases. For this reason, the spread (i.e. the yield difference) between a longer and a shorter bond should be positive. If not, the yield curve can be flat or inverted.

The curve convexity is measured considering some key bond durations (usually 2 years and 10 years, but also other maturities).

Internal Spread on Key Maturities:
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2Y vs 1Y -1.5 bp Yield Curve is flat in Short-Term Maturities
5Y vs 2Y 6.1 bp Yield Curve is flat in Mid-Term vs Short-Term Maturities
10Y vs 2Y 26.8 bp Yield Curve is flat in Long-Term vs Short-Term Maturities
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Residual
Maturity
Yield Spread vs Spread vs
Central Bank
Rate (4.50%)
3 months 1 year 2 years 5 years 10 years
30 years 5.004% 50.4bp
10 years 4.555%
5.5bp
5 years 4.348%
-15.2bp
2 years 4.287%
-21.3bp
1 year 4.302%
-19.8bp
3 months 4.366%
-13.4bp

Israel Credit Ratings

A credit rating is an assessment of the creditworthiness of a borrower (in general terms or with respect to a particular debt or financial obligation).

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Rating Agency Rating Outlook Last Update Action
Standard & Poor's A negative 2 Oct 2024 rating downgrade
Moody's Investors Service Baa1 negative 30 Sep 2024 rating downgrade
Fitch Ratings A negative 12 Aug 2024 rating downgrade
DBRS - -

Israel Interest Rates

A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans.

Interest Rates Value
Central Bank Rate 4.50%

Israel Credit Default Swaps

The term credit default swap (CDS) refers to a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse the lender in the case the borrower defaults.

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Credit Default Swap CDS Value Var % 1W Var % 1M Var % 1Y Implied PD(*)
5 Years CDS 106.96 -1.37 % -20.08 % -2.72 % 1.78 %
(*) Implied probability of default, calculated on the hypothesis of a 40% recovery rate.
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Israel 10Y Bond Yield Spread

The Israel 10Y Government Bond has a 4.555% yield.

A positive spread, marked by , means that the 10Y Bond Yield is higher than the corresponding foreign bond. Instead, a negative spread is marked by a green circle .

Click on the values in "Current Spread" column, for the historical series of the spread.
Click on the "Compare" button, for a report with the full comparison between the two countries, with all the available data.
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Israel 10Y vs Current Spread Chg 1M Chg 6M Chg 12M Compare
Countries
vs Japan 10Y 351.2 bp -30.6 bp -42.7 bp +22.7 bp
vs China 10Y 259.0 bp -10.5 bp +0.6 bp +125.5 bp
vs Germany 10Y 245.3 bp +7.1 bp +17.4 bp +61.3 bp
vs Spain 10Y 179.7 bp +15.8 bp +29.1 bp +96.6 bp
vs France 10Y 168.2 bp +5.2 bp -11.6 bp +38.5 bp
vs Canada 10Y 157.6 bp -0.3 bp +16.4 bp +86.6 bp
vs Italy 10Y 136.0 bp +26.2 bp +40.0 bp +125.6 bp
vs United States 10Y 40.6 bp -8.2 bp -6.2 bp +51.2 bp
vs Australia 10Y 29.2 bp +16.7 bp -28.7 bp +54.7 bp
vs United Kingdom 10Y 27.8 bp -6.3 bp -37.1 bp +20.8 bp
vs India 10Y -229.5 bp -20.8 bp -18.0 bp +90.5 bp
vs Brazil 10Y -942.2 bp -163.4 bp -249.4 bp -258.3 bp
vs Russia 10Y -1142.0 bp +27.3 bp -150.3 bp -303.6 bp

Israel Government Bonds Prices

Price Simulation: bonds with a face value of 100, with different coupon rates.

The highlighted column refers to the zero coupon bond.
Click on for a forecast of the yield.
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Residual
Maturity
Yield Bond Price - with different Coupon Rates Fx
0% 1% 3% 5% 7% 9%
30 years 5.004% 23.11 38.48 69.21 99.94 130.67 161.40
20 years 4.698% 39.92 52.71 78.29 103.86 129.44 155.01
10 years 4.555% 64.05 71.95 87.73 103.51 119.29 135.08
5 years 4.348% 80.83 85.24 94.06 102.87 111.69 120.51
3 years 4.338% 88.04 90.80 96.31 101.83 107.34 112.85
2 years 4.287% 91.95 93.83 97.58 101.34 105.10 108.85
1 year 4.302% 95.88 96.83 98.75 100.67 102.59 104.50
Maturity Date 100.00 100.00 100.00 100.00 100.00 100.00
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