General inflation rose to 3.76% annually in 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.
Cetes at 10 pesos
The Cetes are classified according to the investment term: 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.
How much do I earn if I invest in Cetes?
The 28-day Cetes had a sharp drop of 0.30 percentage points, to stand at 7.1%.
The 91-day instruments achieved a reduction of 0.05 points, to reach 7.30%.
The 181-day bonds fell to 7.41%, while the two-year Cetes stood at 7.76%.
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 3.76% at an 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 7.10%, while annual inflation for September is 3.76%.
By removing inflation from Cete’s profit, it gives a real return of 3.34 percentage points, which is what you would get because you are eliminating the price increase.
The profit is close to double the overall price increase.
