UPDATE 1-Mexico 28-day T-bill yield edges down to 9.57 pct
Mexico’s benchmark 28-day T-bill yield edged down 1 basis point to 9.57 percent on Tuesday but longer-term rates fell sharply as investors bet the central bank will wait until next month before easing monetary policy.
The yield on 91-day T-bills, or Cetes, fell 13 basis points to 9.56 percent and 175-day paper was down 11 basis points to 9.46 percent.
The majority of analysts polled by Reuters on Tuesday predicted the central bank will not relax monetary policy this week, despite recent weak economic growth data.
Mexico’s finance ministry lowered its forecast for 2005 economic growth to 3.5 percent on Tuesday after a soft patch for manufacturers on weaker U.S. demand and a slump in agricultural output.
Although a few analysts bet in the poll that the central bank will let interest rates fall when it holds its twice-monthly review on Friday, most expect it to wait until September to ensure inflation is under tighter control.
More: today.reuters.com
UPDATE 1-Mexico 28-day T-bill yield edges down to 7.98 pct
The yield on Mexico's benchmark Cetes, or T-bills, edged down for the 23rd straight week on Tuesday amid investor expectations that the central bank will push interest rates lower again this month.
The rate on 28-day paper fell four basis points to 7.98 percent while the rates on three-month and six-month paper also fell.
An earlier Reuters survey of Cetes dealers had forecast the 28-day Cetes rate would fall two basis points to 8.00 percent while longer-term T-bill yields would fall slightly or hold steady.
The yield on the 10-year peso denominated bond
Mexico 1-month T-bill yield rises to 7.02 pct
The yield on Mexicos benchmark 28-day Cetes, or T-bills, edged up 1 basis point to 7.02 percent on Tuesday amid expectations of rising U.S. interest rates.
Longer-term Cetes yields ticked up from last week at a central bank auction, along with rates on Mexicos 3-year and 7-year peso from when they were last auctioned on May 16.
The yield on the three-month bill rose to 7.36 percent from 7.28 percent last week, while the yield on the six-month yield rose to 7.63 percent from 7.50 percent.
The 3-year peso bond rose to a yield of 8.50
UPDATE 1-Mexico 28-day T-bill yield falls to 7.92 pct
The yield on Mexico's benchmark 28-day Cetes, or T-bills, dropped six basis points to 7.92 percent on Tuesday as investors saw the central bank cutting interest rates further despite an uptick in inflation.
The rate on 90-day Cetes fell 12 basis points to 7.84 percent while the yield on six-month paper dropped 11 basis points to 7.77 percent.
An earlier Reuters survey of Cetes dealers had predicted the 28-day Cetes rate would fall eight basis points to 7.90 percent and that longer-term T-bill yields would also fall.
The yield on the 5-year peso-denominated bond
Mexico 28-day T-bill yield tumbles to 8.14 percent
The yield on Mexico's benchmark 28-day Cetes, or T-bills, tumbled 28 basis points to 8.14 percent on Tuesday as markets reacted to a sharp central bank interest rate cut last week aimed at boosting growth.
Longer-term rates also fell at the central bank auction.
The yield on 91-day Cetes dropped to 8.12 percent from 8.38 at last week's auction, while the 175-day yield fell to 8.13 percent from 8.34 percent.
Further along the yield curve, the 5-year peso-denominated bond fell to 7.88 percent from 8.36 percent when it was last auctioned on Nov. 15.
The market
UPDATE 1-Mexico 28-day T-bill yield falls to 9.36 pct
The yield on Mexico's benchmark 28-day Cetes, or T-bills, shed 6 basis points to 9.36 percent on Tuesday, as investors bet the central bank will push down its key interest rate over the next few months.
Longer-term rates also fell at the central bank auction.
The decline in short-term interest rates was slightly bigger than market expectations. A Reuters survey of Cetes dealers had forecast the rate on the benchmark one-month paper would edge down 3 basis points to 9.39 percent.
Following signs of a strong improvement in inflation, Mexico's central bank pushed interest rates
Mexico 28-day T-bill yield down to 8.42 pct
The yield on Mexico's benchmark 28-day Cetes, or T-bills, shed 8 basis points to 8.42 percent on Tuesday on expectations the central bank will push interest rates lower this week.
Longer-term rates also fell at the central bank auction.
The fall in interest rates was slightly smaller than market expectations. A Reuters survey of Cetes dealers had forecast the rate on the benchmark one-month paper would drop 10 basis points to 8.40 percent.
The yield on the 10-year peso denominated bond fell to 8.45 percent from 8.73 percent when it was last auctioned on Nov.
UPDATE 1-Mexico 28-day T-bills edge lower to 9.60 pct
The yield on Mexico's benchmark 28-day Cetes, or T-bills, edged one basis point lower to 9.60 percent on Tuesday as investors expect the central bank to hold monetary policy steady at a policy meeting this week.
Longer-term rates moved lower, reflecting growing expectations that interest rates could come down in coming weeks.
T-bill rates have drifted slightly lower in recent weeks as the inflation fears eased and the central bank set an informal reference rate in the secondary market.
Mexico's central bank is due to hold its twice-monthly monetary policy review on Friday and most
Mexico T-bill yields seen flat at weekly auction
The yield on Mexicos benchmark one-month T-bills, or Cetes, was expected to remain flat on Tuesday as investors expect the central bank to hold interest rates steady at a meeting this week.
Yields on three- and six-month Cetes were also expected to be nearly unchanged while the 5-year bond yield was expected to decline at the central banks weekly auction, according to a Reuters poll.
Mexicos central bank is seen keeping rates untouched when it meets on Friday, although some analysts believe it will resume cutting rates later in the year.
More : today.reuters.com
Mexico 28-day yield seen rising at weekly auction
The yield on Mexicos benchmark one-month T-bills was expected to rise on Tuesday as investors rattled by recent peso volatility struggled to predict the U.S. Federal Reserves next monetary policy move.
Yields on three- and six-month T-bills, or Cetes, were also seen rising, but the yield on the governments 10-year peso bond was expected to change little from the last time it was auctioned on Aug. 15. according to a Reuters poll.
Following is a table comparing previous rates at the central banks primary auction with expectations for this weeks sale and the expected change
Mexico stocks hit record high, T-bill yields tumble
Mexican stocks rose to a record high close on Tuesday, driven by telecoms and retailer Wal-Mart de Mexico, while the peso recovered some recently lost ground and T-bill yields tumbled.
The IPC leading index jumped 1.51 percent to end at 17,819.68 points, bringing its return this year to about 38 percent.
Carso Telecom (TELECOMA1.MX: Quote, Profile, Research), the holding company through which billionaire Carlos Slim controls fixed-line operator Telmex (TELMEXL.MX: Quote, Profile, Research) (TMX.N: Quote, Profile, Research), rallied 3.17 percent to 24.76 pesos.
Cellphone operator America Movil (AMXL.MX: Quote, Profile, Research), also controlled by Slim,
