| | |  Business News 
Mexican Bonds Rise as Overseas Investors Seek ‘Secure Option’
 Jonathan Roeder - Bloomberg
go to original
May 29, 2010
Mexican bonds rose for an eighth day, pushing yields to their lowest level in more than a month, as volatility related to the European debt crisis made Mexico’s securities more attractive to foreign investors.
The yield on Mexico’s 10 percent peso bond due in 2024 fell 2 basis points, or 0.02 percentage point, to 7.623 percent at 5 p.m. New York time, according to Banco Santander SA. It is the lowest level since April 23. The price of the security rose 1.06 centavos this week to 120.81 centavos per peso and the yield dropped 13 basis points in the same period.
“Although it may sound strange, bonds from Mexico and some other emerging markets are being perceived as a more secure option,” said Manuel Galvan, a fixed-income analyst at Metanalisis SA in Mexico City.
Declining consumer prices and a weaker currency are contributing to Mexican assets’ appeal, said Rafael Camarena, an economist with Banco Santander SA in Mexico City.
“Inflation results have been favorable and a lot better than what analysts were expecting,” Camarena said.
Prices fell 0.54 percent in the first half of May, the central bank said on May 24. Economists expected them to fall 0.29 percent, according to the median estimate from 13 analysts surveyed by Bloomberg.
A weaker peso has also “made it more attractive for foreign investors to enter the Mexican market,” Camarena said.
The peso fell 1.13 percent to 12.9604 per U.S. dollar, from 12.8138 yesterday. Mexico’s currency has dropped 5 percent in May.
To contact the reporter on this story: Jonathan Roeder in Mexico City at jroeder(at)bloomberg.net
Editor: Alan Mirabella.
|
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us