| Beginning today, the Bank of Israel will publish tables on its website which include the yield curve of CPI-indexed as well as unindexed government bonds. The yield data will be derived by a method developed at the Bank of Israel.The method allows the yield curve for any maturity to be derived from returns of Tel Aviv Stock Exchange (TASE)-traded bonds of various maturities. Thus, the returns will be calculated and published even if bonds for a specific term are not traded at a given time. |
| The CPI-indexed yield curve and the unindexed yield curve will be published for terms to maturity of one year, two years, three years, four years, five years, seven years, ten years, and fifteen years. In addition, the yield for twenty years will be published, but only for CPI-indexed bonds. Figures will be published twice a month: on the fourth business day after the first of the month (excluding Fridays and eves of holidays), the calendar month average will be published—the average returns over the course of the previous month, and on the fourth business day after the 15th of the month (excluding Fridays and eves of holidays) the CPI-dated average will be published—which reflects the average returns over the period from the 16th of the reference month to the 15th day of the following month. |
| In the first stage of publishing the yield curve figures, there will be a six month period of consultation with banks, in which the data will be published and banks will be invited to comment as they see fit. In this period, banks are requested not to use these figures for any purpose. After the consultation period, the Bank of Israel will decide whether to publish these yield curves, and if so, which calculation method to use. |
| After the consultation period, the publication of these figures by the Bank of Israel is expected to increase the transparency in the capital and credit markets, and to serve as an anchor for pricing transactions and thereby deepen the markets. In addition, the publication of this data will increase consumers' negotiating power vis-?-vis financial institutions. This will likely increase competition in the financial markets and in the money markets, and as a result improve consumers' welfare. |
| Nominal rate of return derived from the zero coupon yield curve estimation– press here |
| Real rate of return derived from the zero coupon yield curve estimation – press here |
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