Israel dollar bonds gain after Hezbollah ceasefire takes effect
Adds details on shekel, stocks, CDS, updates prices
LONDON, Nov 27 (Reuters) -Israel's sovereign dollar bonds rallied on Wednesday after a ceasefire between Israel and Lebanon's Iran-backed Hezbollah came into effect, though the country's shekel currency took a breather after recent gains.
Israel's longer-dated bonds saw the biggest advances, with the 2050 maturity adding more than 1 cent to hit a two-month high of 73.4 cents, Tradeweb data showed. US46513JB429=TE
The cost of insuring exposure to Israel debt against default has also fallen this week. Five-year credit default swaps stood at a 115 bps, the lowest since March, according to data from S&P Global Market Intelligence. ILGV5YUSAC=MG
However, the picture was different for stocks and the shekel.
Israel's currency weakened 0.2% following a five-day rally that had lifted the shekel to 3.6189 to the dollar, its firmest since late August.
The domestic blue chip stock index slipped 0.8%, while MSCI's dollar-denominated Israel benchmark declined just over 2%. However, the MSCI Israel index has rallied more than 31% since the start of the year. .MIIL00000PUS
Lebanon's international bonds eked out smaller gains, adding around 0.3 cent and biddingat deeply distressed levels of around 9.4 cents in the dollar, their highest in two years, Tradeweb data showed.
Israel's shekel has strengthened in the run up to Hezbollah ceasefire deal https://reut.rs/4eTionA
Cost of insuring Israel's debt against default slides https://reut.rs/3ZtEjfJ
Reporting by Karin Strohecker, graphics by Marc Jones and Libby George, editing by Libby George and Bernadette Baum
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