Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mexican Bond Yields Decline to Record Low; Peso Little Changed

Don't Miss Out —
Follow us on:

March 5 (Bloomberg) -- Mexico’s bond yields tumbled to a record low amid mounting speculation that the central bank will reduce the country’s target interest rate this week.

Yields on benchmark peso bonds due in 2024 fell one basis point, or 0.01 percentage point, to 5.04 percent at 4 p.m. in Mexico City, according to data compiled by Bloomberg. It’s the lowest closing level since the securities were first issued in 2005. The price rose 0.12 centavo to 144.01 centavos per peso. The peso gained 0.3 percent to 12.7027 per dollar.

“We’re again at record lows,” Jose Carreno, a bond trader at Banco Base SA, said in a phone interview from San Pedro Garza Garcia, Mexico. Traders speculating about a reduction “are trying to get a get ahead a bit of the movement that could happen with the cut. They’re trying to anticipate it.”

Interbank futures contracts show that traders are betting central bank board members led by Governor Agustin Carstens will cut the 4.5 percent benchmark rate at the conclusion of their policy meeting on March 8. Twenty-one of 22 Mexico economists in a survey released today by Citigroup Inc.’s Banamex unit said they see a rate cut coming this year, with the median call being for a 50 basis point reduction at the April meeting.

Credit Suisse Group AG said yesterday that it now expects policy makers to cut the overnight rate to 4 percent this week, changing its call from a 75 basis point reduction at its June meeting.

To contact the reporter on this story: Ben Bain in Mexico City at bbain2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.