Mexican bond markets are celebrating, despite the chaos generated by uncertainty in the country’s financial markets over US trade policy. According to a report by Franklin Templeton,
For example, Fibras (real estate income bonds) have risen more than 12% this year; likewise, Udibonos and M Bonds have accumulated a real gain of 7%.
After the gold ounce, Fibras, Udibonos, and M Bonds dominate the yield table in Mexico so far this year. After equities, which occupy fifth place, federal government bonds also stand out in yields this year.
The asset manager’s specialists explain that these returns have been boosted by the start of the interest rate cut cycle by Banxico, which has already cut its rate in the last 12 months, and is expected to continue doing so through 2025.
The year 2025 began as one of the best in history for long-term debt in Mexico, in contrast to the economic slowdown caused by trade pressures from the United States.
The performance of the Mexican bond market also contrasts with that reflected in the United States stock market, which has a negative cumulative yield of 6% so far this year. Other options have also reported better results amid the volatility, such as the aforementioned case of the ounce of gold, which in fact leads the returns with a cumulative gain of 17% so far this year.
Mexico has been one of the countries most affected by the financial volatility unleashed especially in late January when President Donald Trump returned to power, threatening to impose tariffs on the country despite it being its main trading partner. On April 2, the country was ultimately not affected as it was not included on a global list, remaining partially under the rules of the USMCA, the regional trade agreement signed by the United States, Mexico, and Canada, which is expected to be revised in 2026.
Source: fundssociety
