Junk Tax-Fueled Inflation Swells Gap to U.S. Debt: Mexico Credit
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Surging inflation and the prospect the U.S. Federal Reserve’s reduction of monetary stimulus will spark outflows from developing countries are prompting investors to demand a bigger premium to invest in Mexican bonds.
The country’s 2042 peso notes yield 3.95 percentage points more than similar-maturity U.S. Treasuries, the biggest gap since since Dec. 4, according to data compiled by Bloomberg. The spread was within 0.04 percentage point of an 18-month high.