The Israeli government is expected to use an international bond issue to try focus the world's financial community on its economy, rather than the escalating violence in the country.

The government hopes to raise up to $1bn (€1.12bn) from the international bond markets in two separate deals, with the first possibly appearing in September. It has picked UBS Warburg and Merrill Lynch to manage the eurobond sale, while Schroder Salomon Smith Barney and Lehman Brothers will manage the dollar bond issue.