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May Inflation Data, Yorio Outlines Plans For Sustainable MXN-Bonds

MEXICO
  • Mexican inflation data takes focus Thursday, with markets expecting headline M/M CPI to slow to -0.18% from -0.02% (Core seen more stubborn at +0.32% (Prev. +0.39%). Y/Y rates seen slowing to 5.88% from 6.25% (Core seen slowing to 7.38% from 7.67%).
  • MXN strength has continued to consolidate overnight with the pair trading around 17.35, at the lowest level since May 2016. The recent breach of the bear trigger appears to confirm a resumption of the downtrend and increases the likelihood of a move to 17.0507, the Apr 29 2016 low.
  • Deputy finance minister Yorio outlined plans to sell a new line of sustainable MXN-denominated bonds, with the lines to be fixed rate, with maturities of between 3 and 30years. No specific timeline was provided.

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