Bloomberg News

Mexican Peso Bond Yields Climb After 10-Year Debt Auction

September 04, 2012

Yields on Mexican local currency bonds due in 10 years rose after the Finance Ministry sold 8.5 billion pesos ($645 million) of the debt at auction today.

The yield on the debt due in June 2022 rose one basis point, or 0.01 percentage point, to 5.45 percent at 4 p.m. in Mexico City, according to data compiled by Bloomberg. The yield on the bonds due in 2024 rose four basis points to 5.54 percent. The peso advanced 0.1 percent to 13.1782 per dollar.

Mexican peso debt maturing in 10 years or more slumped as investors digested the additional supply that the debt sale created, according to Alejandro Urbina, who manages and advises on about $800 million of emerging-market assets at Silva Capital Management. The bid-to-cover ratio at the auction, a measure of investor demand, was 2.6.

“There was a placement or emission which put some pressure on the long-end,” Urbina said in a telephone interview. “There still wasn’t much participation by foreigners. There was pension fund selling possibly ahead of the emission.”

Mexico also sold all 7 billion pesos ($531 million) of 28- day Cetes it offered at auction today. The country also auctioned off all 8 billion pesos of the 91-day securities and all 9 billion pesos in 182-day bills.

To contact the reporter on this story: Ben Bain in New York at

To contact the editor responsible for this story: David Papadopoulos at

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