Foreign Investors Return to Mexico in Positive Shift on President
- Foreign holdings of Mexican local debt at highest since August
- Change reflects new investor positivity on Lopez Obrador
Mexican President Andres Manuel Lopez Obrador
Photographer: T.J. Kirkpatrick/Bloomberg
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Foreign investors returned to local Mexican government debt during 2018’s final weeks, drawn by newfound confidence in President Andres Manuel Lopez Obrador after he struck a deal with airport bondholders and proposed a fiscally responsible budget.
The percentage of peso-denominated Mexican sovereign debt held by foreigners jumped 2 percentage points in December to 61.7 percent, the highest since August, data from Mexico’s central bank show. Banxico’s numbers cover the period up to the Christmas holiday. The peso gained 3.5 percent and the yield on the benchmark dollar sovereign bond shed 14.6 basis points during the same period.