Overview

• At the August 5 auction, the 28-day Cetes yield rose to 7.50% from 7.48%, marking a rare uptick after months of declines.
• Demand for the 28-day bills dropped to 3.19 times the amount offered, down from 3.62 at the previous auction.
• Auctions for 91-, 182- and 350-day Cetes saw yields fall to 7.80%, 7.94% and 8.04%, respectively, as traders priced in further policy rate cuts.
• Despite shifting rates, all Cetes continue to offer real returns above the 3.55% inflation rate, maintaining their appeal for conservative investors.
• Analysts recommend monitoring Banxico’s rate decisions, sovereign credit ratings and secondary-market activity or exploring safe havens such as foreign currencies and precious metals.