General inflation rose to 3.74% in the first week of September and although it is within the official goal, the expectation that Banxico will continue to relax its monetary policy for the remainder of this year is reinforced.
How much are Cetes worth?
Cetes are classified according to the investment term: currently they are available at 28, 91,182 and 364 days. The choice depends on each person’s investment horizon and each term offers a different return.
The face value of a Cete is 10 pesos, but they are sold at a discount rate, that is, the investor pays less than those 10 pesos and, at maturity, receives the full value. The difference between the two represents performance.
What performance can I get?
The 28-day Cetes had an increase of 0.28 points, to stand at 7.47% and forcefully reversing the falls recorded in previous weeks.
The 91-day instruments achieved a marginal decrease of 0.03 points, to reach 7.44%.
The 181-day bonds fell to 7.48%, while the two-year Cetes were placed at 7.85%. Despite the decrease, this last term is the most attractive because it is more than twice the inflation rate.
Is it worth investing in Cetes?
The Cetes are attractive because although they have had reductions, they represent an alternative to invest if inflation is taken as a reference, which is currently 3.74% at annual rate, according to Inegi.
The current terms of the Cetes give a return that exceeds the price index, which makes them a valuable option to protect money from the loss of purchasing power.
How to estimate my real performance?
In general terms, one way to estimate what profit you would obtain by investing in Cetes is to subtract the current inflation rate from the yield offered by these bonds, for example.
The 28-day Cete offers a current yield of 7.47%, while annual inflation is 3.74% as of the first half of September.
By removing inflation from Cete’s profit, it gives a real return of 3.73 percentage points, which is what you would get because you are eliminating the price increase.
Thus, the profit is almost double that of the general price increase.
