“While demand for Cetes has been robust since Banxico ended its bullish cycle, we expect investors to significantly increase their positions after the central bank opened the door to cuts as soon as the first quarter of 2024,” Grupo highlighted. Financiero Banorte in a report this Tuesday.
“We anticipate that demand for all terms will be above 3.0x given the attractive real rates. In addition, 1 and 2 year Cetes will most likely be the most in demand for the remainder of the year,” he added.
The 28- and 91-day Cetes had marginal reductions compared to last week, to remain at 10.87% and 11.39%, respectively, Banxico reported.
The 182-day instruments stood at 11.50%, while the one-year instruments went from 11.87% to 11.32%.
Currently, headline inflation in Mexico is at 4.26%, a level close to the central bank’s target of 3% +/- one percentage point.