Bank of Israel ntends to purchase NIS 50 billion in government bonds

Against the backdrop of the growing corona crisis and the sharp slowdown in economic activity, the Bank of Israel today announced a plan for quantitative expansion. The central bank, headed by Governor Amir Yaron, said it intends to purchase NIS 50 billion in government bonds.
The Bank of Israel notes that "In recent weeks there has been a significant deterioration in the economic conditions in the Israeli economy, due to the spread of the Corona virus and the measures taken to prevent it. NIS 50 billion, in order to ease credit conditions in the economy and support economic activity and financial stability. "
They also say that the Bank of Israel's interest rate has long been at a low level, facilitating the financing needs of the business and household sectors. "The bond purchases will enable the Bank of Israel to influence market bond yields throughout the shekel and tight curves, thus lowering long-term credit costs for companies and households as a complementary tool for short-term interest rate policy. The extra monetary support is particularly important at a time when many businesses and households are experiencing liquidity difficulties due to the severe crisis that is hurting their income. "
The Bank of Israel announced a sharp change in the government bond market. The 30-year NIS bond rose by about 2% after trading at 1.5% in the morning. Yield is down to 2.25%.
We note that earlier today, the Federal Reserve announced a significant expansion of its loan programs, with a view to paving the way to the credit markets that we closed last week. He also expanded his framework, which would now include corporate (corporate) bonds and some municipal (local) bonds. The Fed also announced that it would soon unveil a "Maine Street Loan Program" that would support eligible small and medium business loans.