With the decision to cut the rate, analysts expect the cycle of rate cuts to begin.
“Last week, the Bank of Mexico announced its monetary policy decision, which surprised in a divided vote with a 25 basis point cut to the reference rate. In addition, Banxico revised upwards its inflation estimates, while the tone of the statement remained dovish, opening the door to future cuts,” Intercam said in a report.
What is the performance of Cetes this week?
At this week’s auction, 28-day Cetes offer yields of 10.65% and three-month Cetes offer yields of 10.80%.
At six months, the yield is 10.85% and at two years, the longest term for these instruments, the yield is 10.64%.
