Mexican peso bonds fell, pushing yields to a two-week high, as a bigger-than-forecast increase in orders for U.S. durable goods fueled speculation that the Federal Reserve will curtail monetary stimulus.
Yields on securities due in 2024 climbed nine basis points, or 0.09 percentage point, to 5.92 percent at 9:54 a.m. in Mexico City, the highest level on a closing basis since July 8, according to data compiled by Bloomberg. Mexico’s peso depreciated 0.1 percent to 12.6371 per U.S. dollar.
“There has been a series of indicators that in general are showing a recovery in the economy” in the U.S., Salvador Orozco, deputy director for money markets and exchange at Grupo Financiero Santander Mexico SAB, said by phone from Mexico City.
“The market gives a greater possibility that the Fed will start to change its monetary policy posture.”
The Fed will trim its monthly bond buying to $65 billion in September from the current pace of $85 billion, according to half of the economists surveyed by Bloomberg News from July 18 to 22, up from 44 percent last month.
Bookings for U.S. goods meant to last at least three years increased 4.2 percent in June after a revised 5.2 percent gain in the prior month that was bigger than initially estimated, the Commerce Department reported. The median forecast of economists surveyed by Bloomberg was for a 1.4 percent advance.
bloomberg.com
Yields on securities due in 2024 climbed nine basis points, or 0.09 percentage point, to 5.92 percent at 9:54 a.m. in Mexico City, the highest level on a closing basis since July 8, according to data compiled by Bloomberg. Mexico’s peso depreciated 0.1 percent to 12.6371 per U.S. dollar.
“There has been a series of indicators that in general are showing a recovery in the economy” in the U.S., Salvador Orozco, deputy director for money markets and exchange at Grupo Financiero Santander Mexico SAB, said by phone from Mexico City.
“The market gives a greater possibility that the Fed will start to change its monetary policy posture.”
The Fed will trim its monthly bond buying to $65 billion in September from the current pace of $85 billion, according to half of the economists surveyed by Bloomberg News from July 18 to 22, up from 44 percent last month.
Bookings for U.S. goods meant to last at least three years increased 4.2 percent in June after a revised 5.2 percent gain in the prior month that was bigger than initially estimated, the Commerce Department reported. The median forecast of economists surveyed by Bloomberg was for a 1.4 percent advance.
bloomberg.com
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