Overview
- Non-residents purchased $1.322 billion of Mexican bonds in December, the largest monthly increase among emerging markets tracked by the IIF.
- Banxico reported foreign investors held 11.4% of government securities in December, totaling 1.739 trillion pesos, up from a 17-year low in November.
- For 2025 overall, foreigners were net sellers, with $7.023 billion in bond outflows per the IIF and a 92,353 million-peso reduction in local debt holdings in Banxico data.
- Withdrawals concentrated in Bondes F (−161,440 million pesos), Udibonos (−112,488 million), and Cetes (−33,520 million), while fixed‑rate Bonos drew 47,534 million pesos in inflows.
- Drivers cited include heightened global risk aversion, geopolitical uncertainty and T-MEC review concerns, alongside yield shifts after Banxico’s cumulative 250 bp cuts to a 7% policy rate.