Cetes Demand Rebounds on U.S. Growth Speculation: Mexico Credit

Investor demand for Mexican government bills is jumping from a 16-month low on speculation a rebound in the U.S. economy, the Latin American country’s biggest trading partner, will fuel gains in the peso.

Cetes, as the 91-day securities are known, drew bids of 24.6 billion pesos ($2.1 billion), or 3.8 times the 6.5 billion pesos offered in yesterday’s auction, the central bank said on its website. The bid-to-cover ratio, a gauge of demand that measures the number of bids divided by bids accepted, was 3.1 times last week, the lowest since January 2010. The zero-coupon bills yield 4.3 percent, up from 4.29 percent a week ago and 428 basis points, or 4.28 percentage points, more than similar-maturity U.S. government debt.