The yield on peso securities maturing in 2024 increased three basis points, or 0.03 percentage point, to 6.27 percent at 12:46 p.m. in Mexico City even as a local bond auction drew higher demand. The price fell 0.27 centavos to 128.86 centavos per peso as Treasuries declined for the first time in a week.
“There’s some light selling exacerbated by low liquidity and the move higher in U.S. rates,” Alejandro Silva, a founding partner at Chicago-based Silva Capital Management LLC, who helps oversee $800 million of emerging-market assets, said in a phone interview. “Investors are positioned a bit lighter.”
Fed policy makers are forecast by economists to cut monthly asset purchases supporting the economy of Mexico’s biggest trading partner by another $10 billion to $45 billion. A nonfarm payrolls report this week is forecast to show U.S. employers added the most jobs since November.
In Mexico, the National Treasury sold 3.5 billion pesos ($266 million) of 20-year fixed rate bonds as well as other securities today. The sale of the 20-year bonds drew an average yield of 7.12 percent and was 2.75 times oversubscribed, compared with 2.52 in March.
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