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.
Mexico’s longest-maturity peso bonds rallied, pushing yields to a six-week low, after Standard & Poor’s raised the nation’s credit rating one level on constitutional changes to open up the oil industry.
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.