Mexico City. After starting the year with two months of outflows, Mexico reported positive flow in the sovereign debt markets. According to official information, last March investors from other countries acquired more positions in Mexican government bonds than they sold.
According to data from the Bank of Mexico (BdeM), at the end of March 2024 the holding of national bonds by foreign investors amounted to one trillion 783 billion pesos, an increase of 65 thousand 880 million pesos compared to the trillion 717 million pesos reported in the same month of 2023.
In this way, the country broke a negative streak of two consecutive months of foreign capital outflows. In January, the negative flow was 20,781 million pesos, while in February it was 50,419 million pesos.
The holding of government securities in the hands of foreign investors is debt of the Mexican government, in the form of Bonds, M Bonds, Udibonos, Federal Government Development Bonds (Bondes), Federal Treasury Certificates (Cetes) and other instruments issued by the State, acquired by people of another nationality.
When foreign investors acquire debt, it is considered a capital inflow and when they sell it, a foreign capital outflow is reported.
Cetes, the most attractive
According to data from the central bank, in the accumulated of the first three months of 2024, a capital outflow of 5,320 million pesos is reported, after at the end of 2023 foreign investors had Mexican government debt positions for one trillion 788 billion pesos.
Intercam analysts have pointed out that the delay in cuts to the reference rate in the United States has influenced the mood of investors, leading them to moderate their appetite for Mexican fixed income, given that for the moment it seems more attractive to them to maintain their investments in markets more like the United States, or opt for Mexican instruments such as Cetes.
BdeM data show that precisely the Cetes are the only important government instrument that has reported inflows of foreign capital, since at the end of 2023 foreigners had 199,645 million pesos in their possession, while at the end of March the figure amounts to 234,265 million pesos, that is, an increase of 17 percent in three months.
Most of the investment by foreigners is in Bonds, with a total amount of one trillion 387 billion pesos; However, this figure is less than the 401 billion pesos reported at the end of December 2023; Another important item is the Udibonos, in which foreigners had 150,136 million dollars at the end of last year, a figure similar to the 150,08 million at the end of March.
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– 2024-04-21 08:39:20
