Cetes Remain Attractive Despite Lower Yields; The Two-Year Option Doubles the Inflation Rate
Certificates of the Treasury (Cetes), traditionally considered one of the safest and most accessible investment instruments for Mexicans, have recently experienced a decrease in yields. Nevertheless, they continue to represent an attractive alternative given the country’s current inflationary environment, as they are fully backed by the federal government.
The Bank of Mexico (Banxico) holds weekly auctions of Cetes across various terms: 28, 91, 182, 364, and 707 days. Each Cete has a face value of 10 pesos; however, investors purchase these securities at a lower price and receive the full face value at maturity, with the difference representing the real yield.
In the most recent auction, short- and medium-term Cetes saw decreases in their rates: 28-day Cetes offered 7.48%, 91-day Cetes offered 7.92%, and 182-day Cetes offered 7.99%. While these figures are down from previous weeks, the 707-day option settled at 8.52%, which is more than double the current annual inflation rate of 3.55%. This spread positions long-term Cetes as a defensive alternative for small and medium savers concerned about preserving and growing their purchasing power against inflation.
The Cetes Directo online platform continues to solidify its role as the preferred way to access these instruments by eliminating intermediaries and commissions. Managed by Nacional Financiera (Nafin) and the Ministry of Finance, it allows investments starting from 300 pesos, democratizing access to government investments and encouraging financial inclusion.
In a broader context, the reduction in yields is partly due to Banxico’s monetary policy expectations. Although the central bank had maintained a restrictive stance in previous months to control rising prices, the gradual decrease in inflation has opened the door to mild adjustments in rates, which is reflected in these government debt instruments.
Looking ahead, the evolution of Cetes yields will be closely tied to Banxico’s decisions and inflation trends, as well as international factors influencing Mexican financial markets. Nevertheless, for conservative investors, low-risk options like Cetes will remain a key choice in diversified investment portfolios.
In conclusion, while Cetes are currently offering lower yields, they remain attractive as a safe haven against inflation, particularly over longer terms. The accessibility and reliability they offer make them a significant tool for encouraging savings and protecting capital in the Mexican economy.
