According to the latest data released, the benchmark bonds of the Israeli government fell and its yields rose its fastest in three weeks.

The fall in bonds was recorded after suggestions that the government will record a high budget deficit and may struggle to repay its debt to the lenders.

The yield on the 4.25 per cent securities set to mature in March 2023 increased 0.02 percentage point to 3.93 per cent this afternoon in Tel Aviv.

It is the highest level of increase in yields since 13 February, 2013. The yields on 5.5 per cent notes due in January 2022 also increased to 3.70 per cent.

The Israeli government recorded a budget deficit of 4.3 billion-shekel or $1.15 billion during February partially due to higher than expected budget refunds in the country, the finance ministry said.

The government has recorded a budget surplus of 2.6 billion shekels in January.

The tax receipts has fallen 4.8 per cent from the same month of the previous year as the Israeli businesses faced weak demand in the global economy.

The government had to refund 2.2 billion shekels during February compared to 0.7 billion shekels in the February of the previous year.