Pimco-Led Peso Bulls Cheer One-and-Done Rate Cut: Mexico Credit

Foreign investors banking on currency gains to amplify their Mexican debt returns can breathe easier after the central bank signaled its first interest-rate cut since 2009 would be a one-time reduction.

The peso jumped 1 percent in the biggest advance since Jan. 2 after the bank lowered its benchmark rate by a half-percentage point to 4 percent. The currency’s gain boosted returns on Mexico’s peso-denominated government bonds to 6.6 percent this year in dollar terms, six times the average in emerging markets, according to Bank of America Corp.