Decline in Cetes Returns Ahead of Banxico's Decision

This week, the one-year Cetes (Mexican Federal Treasury Certificates) saw the lowest returns. In the recent auction of government securities held by the Bank of Mexico (Banxico), it was noted that all terms offered lower gains, as there is an expectation that the central bank will implement a new adjustment to the reference rate next week.

Experts anticipate that Banxico might reduce the rate by 25 basis points due to a slight decrease in overall inflation. However, despite inflation showing a decline, the central bank has been unable to reach its 3% target for the past 42 months.

Cetes Returns: The 28-day Cetes offered a return of 10.40%, while the three-month returns fell to 10.56%. For the six-month term, a return of 10.54% was reported, and for the one-year term, the returns were at 10.38%.

The drop in Cetes returns reflects the economic environment and the monetary policy decisions of Banxico. While a rate cut could provide temporary relief against inflation, it is crucial for investors to stay attentive to fiscal trends and market behavior, as these factors can influence their investment decisions in both the short and long term.