State Treasurer David McRae announced the purchase of $10 million worth of Israeli bonds, which provide a higher rate of return than many other financing options and offer much-needed support to a key U.S. ally.
“While this investment comprises just a small fraction of Mississippi’s investment portfolio, its impact on our ally, Israel, is profound,” said McRae. “Especially since the Oct. 7 terrorist attack, Israel has been forced to fight for its life as the only Middle Eastern democracy. This mutually beneficial agreement provides Israel additional financial resources during these trying times, while providing Mississippians with a high rate of return on our investment.”
Mississippi has been invested in Israel bonds for the last four years and has earned over $2.2 million in interest income. Israel has a high-quality credit rating, and the bonds have a solid coupon, paying 4.76% on our reinvestment that occurred on February 1, 2023. That’s about 40 basis points higher than the current two-year U.S. Treasury rate of around 4.36% (as of Jan. 30, 2024).