Mexican Peso Points to Trouble Ahead for Foreign Bond Buyers
- Debt holdings remain high despite Nafta, election risks
- Peso key for yield spread and investors’ Mbonos appetite
Photographer: Susana Gonzalez/Bloomberg
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The Mexican peso has started to flash a warning to bond investors.
Foreigners hold more than 60 percent of Mexican government bonds despite the uncertainty stoked by the North American Free Trade Agreement renegotiation and an upcoming presidential election. But this may change amid growing conviction that the peso’s gains this year could soon be reversed.