Understanding CETEs and Their Significance
CETEs, or Certificados de la Tesorería de la Federación, are short-term debt instruments issued by the Mexican government to raise funds. They are considered one of the safest investments in the Mexican financial market due to the government’s backing and their discounted placement, where investors purchase them at a price lower than their nominal value, earning profit upon maturity.
Among the various terms available, the 28-day CETE is the most frequently used benchmark for gauging short-term interest rate trends in Mexico’s economy.
Historical Trend of 28-Day CETEs
According to data from Banco de México, the 28-day CETE rate has consistently declined over the past year. In November 2024, the yield stood at 10.05%, subsequently dropping to 9.45% in February, 8.31% in May, and further to 7.67% in July of 2025.
This downward trajectory reflects a continuous adjustment in response to lower inflation rates and monetary policy decisions aimed at reducing borrowing costs.
Recent Drop in CETE Rates
In November 2025, the 28-day CETE rate reached 7.19%, marking a cumulative decrease of 286 basis points compared to the same month in the previous year.
Key Questions and Answers
- What are CETEs? CETEs, or Certificados de la Tesorería de la Federación, are short-term debt instruments issued by the Mexican government to finance its activities.
- Why are CETEs significant? CETEs are considered one of the safest investments in Mexico’s financial market due to government backing and their discounted placement.
- What does the recent drop in CETE rates indicate? The decline in 28-day CETE rates reflects lower inflation and monetary policy decisions aimed at reducing borrowing costs.
- What is the current 28-day CETE rate? As of November 2025, the 28-day CETE rate is 7.19%.
