Mexico’s Peso, Bonds Gain as U.S. Jobs Ease Fed Concern

Mexico’s peso rose for the first time in three days as a smaller-than-forecast increase in U.S. payrolls eased concern the Federal Reserve will cut stimulus that has buoyed demand for the Latin American country’s assets.

The currency gained 1.2 percent to 12.8414 per dollar at 4 p.m. in Mexico City, the biggest advance among the dollar’s 16 most-traded counterparts as traders boosted bets that U.S. policy makers will continue buying $85 billion of bonds each month to bolster growth in the world’s largest economy. The Fed will pare the monthly pace of purchases to $70 billion at its March 18-19 meeting, according to the median of 40 responses in a Bloomberg survey last week.

“The market relaxed a lot when the employment data came out,” Roberto Galvan, a trader at Intercam Casa de Bolsa SA, said by phone from Mexico City. “A good piece of data would have added to the possibility for the removal of stimulus.”

The addition of 148,000 workers last month in the U.S. followed a revised 193,000 increase in August that was larger than initially estimated, Labor Department figures showed today in Washington. The median forecast of 93 economists surveyed by Bloomberg called for a 180,000 advance.

Today’s advance pushed the Mexican currency to a 0.1 percent advance for the year. Yields on peso bonds due in December 2024 fell eight basis points, or 0.08 percentage point, today to 5.70 percent, according to data compiled by Bloomberg. The nation’s benchmark IPC index of 35 stocks rose 1.2 percent, the most since Oct. 11.

Mexico’s Finance Ministry today sold 6 billion pesos in one-month notes known as Cetes at a weekly debt auction, according to the central bank. The nation also sold 9.5 billion pesos of three-month bills, 10.5 billion pesos of notes due in six months and 10 billion pesos in three-year bonds.

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