Increase in One-Year Cetes Following Inflation Rise

This week there was a growth in the yields of Cetes for six months and a year, thanks to the announcement that inflation rose in the first half of October. During the recent auction of government securities, the short-term Cetes remained almost unchanged, while the longer-term ones experienced an improvement.

The inflation in the first half of October increased, driven by rising prices of fruits and vegetables, reaching 4.69%. Experts believe that the Bank of Mexico (Banxico) will not achieve its goal of ending the fourth quarter at 4.3%, although they expect the institution to continue cutting the reference rate.

What are the current yields of Cetes? The yields on 28-day Cetes remained at 10.20% for the second consecutive week, while the 3-month (91 days) Cetes offer a yield of 10.53%. For the six-month term, the yields rise to 10.64%, and for one year, the yields reach 10.52%.

It’s essential to observe how inflation affects the yields of debt instruments. While Cetes have provided attractive returns, it’s crucial for investors to consider the impact that inflation may have on their long-term purchasing power. Staying informed and diversifying investments are key steps to optimizing returns and mitigating risks in these changing economic circumstances.