Mexico Peso Bonds Slip From Three-Month High as Currency Weakens

Mexico’s benchmark bonds slipped from a three-month high as traders awaited the results of a Federal Reserve policy meeting today.

Securities due in 2024 fell 0.24 centavo to 129.68 centavos per peso at 9:51 a.m. in Mexico City, sending yields up 0.02 percentage point to 6.2 percent. The peso weakened 0.1 percent to 13.167 per dollar.

Mexico’s fixed-rate local government bonds, which are majority owned by foreigners, have rebounded from a two-year low reached last month after Moody’s Investors Service raised the country’s credit rating Feb. 5 and amid speculation the Fed won’t quicken its withdrawal of stimulus. The Fed today will announce it’s cutting monthly bond purchases by $10 billion, the same rate of reduction it announced at its previous two meetings, according to the median estimate of economists surveyed by Bloomberg.

“The market is waiting on what the Fed says about the economy and the next moves,” Roberto Ivan Garcia Castellanos, a trader at Casa de Bolsa Finamex SA, said in an e-mailed response to questions.

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