Pimco’s QE3 Distaste Grows as Peso Bond Bet Fades: Mexico Credit
This article is for subscribers only.
Bill Gross’s concern that Ben S. Bernanke is sparking a jump in U.S. consumer prices is already sinking his bet in Mexican peso bonds.
Yields on Mexican benchmark notes due in 2024 soared to a three-month high of 5.73 percent on Sept. 14, a day after the Federal Reserve announced a third round of asset purchases aimed at boosting economic growth. Yields have jumped 59 basis points, or 0.59 percentage point, from a record low July 20 and erased almost all the gains in the debt since Gross said in a June 19 post on Pacific Investment Management Co.’s Twitter account that he favored Mexican bonds over German bunds. German yields have climbed 47 basis points in the same period.