en_obs-sn/content/13/02.md

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the covenant I am making with you

God was going to make a new covenant with the Israelites (See: 13:04).

my prized possession

The Israelites would belong to God and he would value them more than any other people group.

a kingdom of priests

The Israelites were supposed to teach the other nations about God and be a mediator between God and the nations just as there were priests in the nation of Israel to go between God and the Israelites.