“The reading of this week’s auction indicates that the market is already discounting that Banco de México will pause the reference rate hike cycle this Thursday in its monetary policy announcement,” Intercam said in a report.
The latest inflation data gave slightly optimistic signals about the decline in the trajectory although core inflation is still in the eye of analysts.
Banorte believes that the lagged effect of monetary policy will be enough for inflation to eventually reach its target level.
“However, it will be very relevant to identify the factors that indicate how long the rate will remain high and the start of cuts,” he said in a report.
What is the yield of the Cetes?
The one-month Cetes had a yield of 11.25%, at three months the yield rate reached 11.46%, at half a year the rate was 11.57% and at one year, the yield was 11.5%.