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Potential For 4-Person Banxico Decision, $4 Billion USD Bond Sale

MEXICO
  • Banxico Deputy Governor Jonathan Heath took to twitter to say the board will continue to take note of Gerardo Esquivel’s concerns of overly restrictive policy following his term ending on December 31. While Heath explained that five members on the board was the most optimal structure, he also indicated that the bank is robust and can work very well with just four members.
    • His comments potentially increase the likelihood that the February 09 decision may be taken by just four members, a marginally hawkish development given Esquivel’s relatively dovish stance and regular dissents.
  • Mexico kicked off 2023 with an offering of USD bonds, the first emerging-market government to tap international debt markets this year.
    • The Latin American country priced a $1.25 billion five-year note at a yield of 150 basis points and $2.75 billion of 12-year bonds at 260 basis points above Treasuries, according to people familiar with the matter. Demand for the notes reached $18.4 billion, or 4.6 times the amount placed. (Bloomberg)
  • From yesterday, reports circulated that the Finance Ministry expects Pemex to pay debt coming due in the first quarter without government help, according to people with knowledge of the situation.

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