“The market is already convinced that Banxico will keep the reference rate unchanged at 11.25% for the remainder of the year. This perspective was consolidated due to the possibility that the Federal Reserve will make an additional increase before the end of 2023 and the more complex inflationary environment after the rebound in energy prices,” Banorte said in a report this Tuesday.
The yields of the two-year Cetes (707 days) were what registered the greatest increase in their yields, going from 11.5% to 11.75%, according to information from Banxico.
The rate of 28-day instruments went from 11% to 11.05%, while the six-month yield increased from 11.57% to 11.6%.
Only the 91-day Cetes had a marginal decrease, going from 11.4% to 11.39%.
Banorte said it expects demand for Cetes to remain high due to more attractive real rates after a moderation in Mexico’s general inflation.
In this sense, the holding of foreigners in Cetes continues to rise to levels close to the maximum since March 2020 of 187,009 million pesos.
At the end of the first half of September, Mexico’s annual general inflation was 4.4%, a rate higher than Banxico’s target of 3% +/- one percentage point.