al-Fadl bin Dakayn, Abu Na'eem الفضل بن دكين أبو نعيم الملائي · Chapters on Manners

The Jews used to sneeze in the presence of the Prophet (ﷺ) hoping that he would say: 'Yarhamukumullah (May Allah have mercy upon you).' So he said: 'Yahdikumullahu Wa Yuslihu Balakum (May Allah guide you and rectify your affairs).'"