Bank of Israel paper reviews bond market reforms


A Bank of Israel paper published on Monday shows that a government reform package to increase liquidity in secondary markets received mixed reviews.

Inon Gamrasni, the paper's author, examines the effect of reforms implemented by the Ministry of Finance in 2006 on the liquidity of local currency unindexed government bonds on the secondary market.

Gamrasni shows that the increased level of activity in the secondary market for local currency unindexed government bonds did not reduce liquidity cost

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