Death of 75-Year Monopoly Can’t Come Soon Enough: Mexico Credit

President Enrique Pena Nieto’s plan to loosen Mexico’s 75-year-old oil monopoly is underwhelming the bond market after he unveiled fewer incentives for private drilling companies than his political rivals advocated.

Yields on peso-denominated debt due in 2024 have climbed 23 basis points, or 0.23 percentage point, to 6 percent since the 29-page proposal was released yesterday. Speculation that the plan, which was delayed by a week as Pena Nieto tried to build greater political support, would boost Mexico’s economy had reduced yields this month by 24 basis points. That compares with an average decline of two basis points for emerging-market bonds, according to Bank of America Corp.