Israeli bonds have been made available to international investors to help fund Israel's war efforts. They promise a significantly higher yield compared to US Treasury yields (6.25% for 4 year maturity versus 4.5%¹⁾) to make them more attractive to investors. A Financial Times analysis²⁾ included the following:

Investors and analysts noted that the bumper issuance was done through private placements rather than via open syndications and roadshows, which are usually carried out when new bonds are launched. The reason for this, they said, could be to raise funds for the war effort quickly or without attracting unwanted attention, and could be a sign of how nervous some investors had grown about buying Israel’s debt.

A February 2024 Bloomberg article³⁾ highlights Israel's deteriorating economic position due to the war and the use of bonds to attempt to recover:

Israel will have to sell a near-record amount of bonds this year to fund its war against Hamas, according to several finance ministry officials with knowledge of the matter. The task got more complicated on Friday, when Israel’s credit rating was downgraded for the first time ever.