Robust trading activity offsets foreign investor caution
This document presents a comprehensive set of metrics on market liquidity and trading activity across the MBONO, UDIBONO and swap markets. It includes a structured analysis by security and by counterparty, focusing on the following key indicators: trading volume, average ticket size (in MXN million and DV01), turnover (%), and market share. Please note that trends in these indicators do not necessarily align with net inflows or outflows which we track in our monthly bondholders’ report.
MBono liquidity: still strong YtD despite softer activity in 3Q25
Liquidity in the MBono market, measured by total trading volume and DV01-adjusted activity, remains elevated YtD compared to previous years, driven by increased trading in long-duration benchmarks such as M34, M30, and M53. However, 3Q25 saw a decline in activity from the historical highs seen in the first half of the year, with local interbank, pension funds, mutual funds, and other local investors all showing weaker liquidity. Foreign investor activity has been on an uptrend since 2022, although activity dipped mid-quarter in 3Q25, but recovered strongly toward the end of the quarter. Local banks remain the main participants, followed by foreigners, and YtD liquidity metrics, including ticket sizes and turnover, all still point to a deeper and more resilient market.
Udibono liquidity: liquidity increased in 3Q25 despite moderating inflation
Udibono market liquidity has been strong year-to-date, with higher trading volumes and ticket sizes than in previous years. Foreign investors increased their trading share and risk exposure, despite outflows; see our monthly flows report. Local mutual funds picked up towards the end of 3Q25, while pension funds and banks saw reduced participation. Overall, risk-adjusted activity rose, although volumes moderated across most segments.
Swaps trading volume: moderating, but still elevated
Swaps trading volume declined in 3Q25 compared to previous quarters, although it continues to exceed MBono activity levels. The majority of trading remains in the interest rate swaps (IRS) segment, with participants actively positioning around the ongoing easing cycle. Liquidity is concentrated in the 0-1Y segment, while it has significantly decreased in the 2Y-4Y and longer maturities. Despite the moderation, average volumes could remain elevated as the easing cycle progresses. Of particular note, local investor participation has increased relative to 2024.