Background on CETES and Banxico
Certificados de la Tesorería de la Federación (CETES) are interest-bearing securities issued by the Mexican government to finance public debt. Banco de México (Banxico) is the country’s central bank, responsible for implementing monetary policy and managing foreign exchange operations.
Recent CETES Auction Results
The results of the weekly CETES auction by Banxico show mixed performance:
- 28-day CETES: The interest rate dropped by 0.10%, settling at 7.15%. A total of 9,000 million pesos were issued, with demand reaching 2.26 times the amount offered.
- 91-day CETES: The interest rate increased by 0.05%, reaching 7.25%. Similar to the 28-day CETES, 9,000 million pesos were issued, with demand being 2.62 times the amount offered.
- 175-day CETES: The interest rate decreased by 0.05%, now at 7.50%. This CETES saw the issuance of 15,000 million pesos, with demand being 2.03 times the amount offered.
- 679-day CETES: The interest rate rose by 0.19%, now at 7.85%. This CETES had 15,000 million pesos issued, with demand being 1.95 times the amount offered.
- 30-year MBono: The interest rate went up by 0.12 percentage points, reaching 9.52%. This MBono saw the issuance of 10,000 million pesos, with demand being 2.09 times the amount offered.
- 3-year Udibonos: The interest rate increased by 0.16 percentage points, reaching 4.35%. A total of 6,917.82 million pesos were issued, with demand being 2.34 times the amount offered.
Inflation and Monetary Policy Expectations
The general inflation rate rose to 3.8% annually in November, remaining within Banxico’s official target but reinforcing expectations that the central bank will continue to ease its monetary policy.
Analysts from banks and brokerage firms predict that the national reference rate will close 2025 at 7%, with anticipation of a 25 basis points interest rate cut in the upcoming meeting on Thursday.
Key Questions and Answers
- What are CETES? CETES are interest-bearing securities issued by the Mexican government to finance public debt.
- Who is Banco de México (Banxico)? Banxico is Mexico’s central bank, responsible for implementing monetary policy and managing foreign exchange operations.
- What do the recent CETES auction results indicate? The results show mixed performance, with some interest rates decreasing while others increased. This reflects the current economic climate and investor expectations.
- What is the current inflation rate in Mexico? The general inflation rate is 3.8% annually as of November 2025.
- What are analysts predicting for Banxico’s monetary policy? Analysts expect another interest rate cut of 25 basis points in the upcoming Banxico meeting, as inflation remains within the target range.
