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Broad Risk-Off Sparks MXN Weakness Ahead Of Tomorrow's CPI

MEXICO
  • Broad risk-off sparked a wave of dollar demand during Tuesday's session with most EM currencies bearing the brunt of the flight to safety. USDMXN rose to a high of 20.0590 before stabilising around 20.00. Focus shifts to the FOMC minutes later today before the important June CPI print is released tomorrow.
    • Mexico Analysts Raise 2021 CPI Est. to 5.60% Vs. 5.10%: Citi biweekly analysts' survey.
  • PRICED: Mexico EU1.25b Benchmark 15Y SDG MS+195
  • EU1.25b 15Y Social Fixed (Aug. 12, 2036) at MS+195 (Source: Bloomberg)
    • Guidance MS+205 area, IPT MS+220 area
    • Reoffer price 99.888 to yield 2.259%
    • Coupon: 2.2500, annual, act/act, short first
  • Mexico returned to global markets for a sustainable development goal-linked bond sale after investors greeted a similar issuance last year with strong demand.
    • Deputy Finance Minister Gabriel Yorio tweeted that "the corporations of our country will be able to use this curve to access financing of sustainable funds. This bond obtained a low historical interest rate compared to other similar instruments (2.25%).

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