Marketing 50YR $ Bond, USDMXN Approaches 19.70

Overall the news surrounding the Banxico Bill remains positive. Following changes that will have eased concerns, the bill will likely be passed in February. Lawmakers remain determined to negotiate details with central bank and finance ministry officials in January, clearing the way for the lower house approval the following month. If the bill is modified, the senate would have to hold a final vote before it becomes law.

NEW DEAL: Mexico is marketing a 50-year dollar-denominated bond, joining a flurry of Latin American governments looking to lengthen their debt profiles at a time of tumbling borrowing costs.

• Mexico $Benchmark 50Y: Books open, to price today within NY/London business hours.
• $Benchmark 50Y Fixed (April 19, 2071) 4.15% Area.

USDMXN had some volatile sessions over the holiday period with any MXN weakness being met with firm demand. USDMXN finds itself back towards the most recent lows amid broad Dollar weakness. 19.70 remains most notable support, a break of which would see fresh lows since March 2019.

Thursday we will have the release of December CPI which could give further clues as to whether Banxico may restart the easing cycle with their newly appointed Governor Borja.