The Mexican peso’s implied volatility rose to a one-week high as analysts forecast policy makers will lower borrowing costs for a third time this year to shore up growth in Latin America’s second-biggest economy.
Cemex SAB, the largest cement maker in the Americas, is selling asset-backed debt for the first time in two years to obtain lower yields as slumping demand for building materials drives up its benchmark borrowing costs.
Mexico’s bond yields fell to their lowest level since July, extending last week’s tumble, after policy makers signaled that slowing inflation may prompt them to cut benchmark rates for the first time in three years.
Mexico’s peso rose for a seventh day as a rebound in U.S. manufacturing boosted the outlook for the country’s biggest trading partner, outweighing a poll showing economists lowered their local growth forecasts for this year.
Mexico peso volatility rose to a 17- month high as investors weighed concern the U.S. will pare monetary stimulus against predictions that lawmakers will pass legislation to bolster the Latin American country’s growth.