- US inflation reinforces expectations of a prolonged Fed pause and a higher-for-longer interest rate environment.
- The upcoming FOMC minutes will be key to assessing the future direction of US monetary policy amid growing divisions within the Fed.
- Local curves faced renewed upward pressure as investors demanded higher risk premiums in a volatile global environment. Nevertheless, we maintain a constructive view on the belly of the MBono curve, favoring duration and relative-value strategies.
- We continue to expect USDMXN to remain range-bound in the near term, with depreciation pressures building into 2H26.
- Upcoming inflation and GDP releases will be crucial in assessing Mexico’s disinflation process and the expected recovery in 2Q26.
- Foreign appetite for Mexican fixed income stabilized in April, supported by renewed demand for Udibonos.