Foreign investors’ holdings of Cetes (Treasury Bonds) experienced two months of declines in September of this year, making them one of the instruments most affected by foreign investors amid monetary policy adjustments and global uncertainty.
The realignment of investment portfolios has led to an outflow of 15.1 billion pesos (mxp) from January to September, according to data from the Bank of Mexico (Banxico).
The reduction in Cetes holdings is only behind the 86.692 billion peso drop in Udibonos, which recorded four months of decline, according to central bank figures.
With these two instruments, total holdings of government securities held by foreign investors fell by 87.122 billion pesos for the year, to a total of 1.7 trillion pesos.
Regarding Cetes, the total held by foreigners is 205.48 billion pesos; while, in Udibonos, it stood at 81.374 billion pesos at the end of September of this year.
Unlike Cetes and Udibonos, the remaining instruments have shown growth in foreign investors’ holdings, for example, in Bonds, which are the most attractive for investors.
The balance sheet reveals an increase in Bonds of 11.36 billion pesos; in MS Bonds, by 3.178 billion pesos; in F Bonds, by 73 million pesos; and in D Bonds, by 65 million pesos from January to September.
The changes in monetary policy also adjusted expectations for future interest rate cuts by Banxico, which is currently at 7.50%, and analysts do not rule out a year-end rate of 7.00%.
In our country, long-term market rates have been falling, while we have not seen a greater appetite for sovereign assets in order to take advantage of the movement and position themselves in the longer nodes,
said Kapital Bank.
The firm added that country risk, as measured by the CDS, has decreased considerably, possibly because “de-dollarization” has caused investors to turn to safer investments such as gold.
Despite a more favorable investment environment in emerging markets, in Mexico in particular, we have not seen a greater appetite for sovereign assets.
Source: elceo
