- As expected, Banco de México paused in its most recent monetary policy meeting and maintained its core messaging unchanged. The minutes will come out this week, and it will be interesting to see if all Board members maintained the hawkish stance reflected.
- Ongoing positive outlook for consumption:Consumption has maintained a steady growth rate at the start of this new cycle, expanding by 4.4% YoY on average in the first seven months of 2023.
- SHCP swap auction: Last week the Ministry of Finance (SHCP) carried out a swap auction. Bidders delivered mainly Cetes, Bondes F, Mbonos, and Udibonos maturing between 2024 and 2025, while receiving in exchange Bondes F with maturities in 2026-2027 and Udibonos in 2028-2031.
- On higher rates in local assets and the MXN: Last week, local rates continued being sold off while the MXN depreciated against the USD in line with most currencies in response to expectations of higher rates for longer.
Credit:
- AFAC notifies airport groups of changes in tariff regulation.
- Pemex (B1/BBB/B+) exchanges USD 2bn in notes.
- Cemex (Nr/BB+/BB+) to issue MXN 6.0bn of stock certificates.
- CFE (Baa2/BBB/BBB-) concluded the repurchase of four of its bonds for about USD 900mn.