Thursday, 19 March 2009

Israel Bond to Price Today After Violent Swings in Treasuries Caused by Federal Reserve Repurchase Decision

One good source told us that the bond transaction involving Israel will be priced today. The bookbuilding was suspended following the dramatic movement in Treasury yields that followed the announcement by U.S. authorities of a planned $300 billion in Treasury bond repurchases.

Price guidance on the 10-year bond was around 290 basis points above the equivalent Treasury yield ( ten year bond) a few hours before the Fed announcement. No indications were given on the direction of the new price guidance -- and I don't want to risk saying where the yield is headed for -- I have no freaking idea!

Citigroup Inc., Deutsche Bank AG and Goldman Sachs Group Inc. are handling the sale.

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