Mexico City. (Reuters) – The primary yields of the Treasury Certificates (Cetes) in Mexico they sank to levels not seen in almost three years in the auction on Tuesday, after the Federal Reserve announced an emergency rate cut to protect the US economy from the impact of the coronavirus. The 28-day Cete reference period fell 0.21 points, to 6.70%, its lowest level since mid-May 2017, almost in line with market projections, according to a Reuters survey. The unexpected decision of the Federal Reserve fed expectations that the Mexican central bank (Banxico) could do the same in the coming days at a time when the local economy remains stagnant. “Today’s announcement in the United States gives Banxico more room for maneuver and it is possible that it will replicate this movement,” said the financial group Ve por Más, which said it lowered its estimate for the level of Mexico’s reference rate at the close. of the year to a range of 6.0% -6.5% from a previous 6.75%. The next central bank monetary policy notice is scheduled for March 26. Currently, the one-day Interbank Interest Rate is 7% after five consecutive sales. According to the results of Tuesday’s auction, the three-month rate fell 0.21 points to 6.65%, and the 175-day yield decreased 0.22 points to 6.51%. Both levels not seen since the first quarter of 2017. Cetes demand in the three installments totaled 80.092 million pesos almost four times the supply of Mexican government securities. (Report by Noé Torres)
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