Bank of Israel sold 1.5 billion worth of 10 year bonds at an average interest rate 2% above similar T bonds. There was demand for 5 billion dollars, it was oversubscribed.
This emmission is touted as a bid success, showing that investors have confidence in the State of Israel and that we are able to receive money much cheaper than any European country. Nice.
Just to vent out my inner overflowing evilness, I say it was a big failure. If the demand was so large as it was, Bank of Israel is overpaying and could well have sold the same bonds at American rates. Or Japanese rates, that is below 0%. Let investors pay us for holding their money. THAT would have been a triumph!
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