Drop in Cetes: Rate Below 10% Before Banxico's Announcement
The yields on 28-day Cetes have fallen to their lowest level in two years, just before the Bank of Mexico (Banxico) makes its final monetary policy announcement of the year. It is anticipated that this Thursday, Banxico will implement a new 25 basis points cut in the benchmark interest rate, bringing it down to 10% due to a decreasing inflation rate.
According to a report from Intercam, "We expect a 25 basis point cut in the funding rate, though it's possible that some members may consider a reduction of up to 50 basis points." With this action from the central bank, it seems we are nearing the conclusion of double-digit yields. Nonetheless, Cetes remain one of the most reliable investment options, especially since November's inflation was at 4.55%.
What yields have Cetes posted this week? Currently, the yields on 28-day Cetes stand at 9.80%, while those for three months are at 9.84%. The six-month rate is at 9.76%, and for two years, it has dropped to 9.99%. ______ Do you want to grow your business? In this episode of Cuéntame de Economía, you’ll find some recommendations ______It’s important to consider that as interest rates adjust, investors need to carefully analyze their options and the economic context before making any financial moves. The decline in yields may provide opportunities in the market, but it should always be approached cautiously in light of economic uncertainty.
