Yields on Mexico’s peso bonds dropped to a 10-month low as speculation mounted policy makers will act to stimulate the global economy.
The yield on Mexican local-currency bonds due in 2021 fell one basis point, or 0.01 percentage point, to 5.85 percent at 8:17 a.m. in Mexico City, the lowest since Aug. 23, according to data compiled by Bloomberg. The price increased 0.06 centavo to 104.56 centavos per peso.
Speculation is mounting that policy makers in the U.S. may initiate a new round of stimulus to shore up the economy, the destination for 80 percent of Mexico’s exports.
European Central Bank President Mario Draghi said officials stand ready to act as the euro region’s growth outlook worsens, while damping expectations that another round of three-year funding for banks is imminent.
The peso climbed 0.2 percent to 14.1895 per U.S. dollar, from 14.2188 yesterday.
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