Mexico bonds drop on concerns of less U.S. stimulus

Mexico’s peso bonds fell as a report showing fewer Americans filed for unemployment benefits encouraged speculation that policy makers will cut U.S. monetary stimulus at a faster pace than previously projected.

Yields on benchmark fixed-rate peso bonds maturing in 2024 increased two basis points, or 0.02 percent, to 6.54 percent, the highest since early September.

The U.S. Federal Reserve said on December 18 that it will cut its monthly bond buying by $10 billion to $75 billion in a first step toward unwinding the stimulus, citing an improving labor market.

Source: Bloomberg