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Quarterly Inflation Report Likely Infitting with August Rate Decision

MEXICO
  • Given the updated forecast path released by the Banxico on Aug12, markets expect little new from the bank's quarterly inflation report at 1230 local time (1830BST/1330ET).
  • The shake up within Mexico's finance ministry continues, with the public debt chief in charge of designing the bond issuance schedule stepping down. A successor has not yet been named.
  • Mexico also sell MXN 11bln across 2026 Bondes and Mbonos as well as 450mln udis of 2031 linkers.
  • USD/MXN is edging lower, inline with the modest weakness in the greenback, bringing the pair within reach of support at the 100-/50-dmas at 20.0055/20.0096. Break below here opens more solid support at the mid-August lows of 19.84. TIIES curve broadly unchanged, with 2y at 5.79%, while 10y crosses at 6.92%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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