Mexico’s inflation-linked bonds fell, pushing yields to a one-week high, as consumer prices were unchanged in the first two weeks of July.
Yields on Udibonos maturing in December 2014 climbed six basis points, or 0.06 percentage point, to 0.25 percent at 10:13 a.m. in Mexico City, the highest level on a closing basis since July 12, according to data compiled by Bloomberg.
“Inflation was better than expected,” Agustin Villarreal, a fixed-income director at Invex in Mexico City, said in a telephone interview.
Economists surveyed by Bloomberg had forecast a 0.11 percent increase in the consumer price index. The annual inflation rate slowed to 3.53 percent, within the central bank’s 2 percent to 4 percent target range.
The peso declined 0.9 percent to 12.6026 per dollar, the biggest drop among 24 major emerging-market currencies tracked by Bloomberg.
To contact the reporter on this story: Ben Bain in Mexico City at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org