Historic Drop in Cetes Yields Since January

In August, inflation performed quite positively, and the Cetes suggest that the Bank of Mexico (Banxico) could implement further decreases in the reference rate in the coming months. This week, the yields on the 28-day Cetes reached their lowest level in eight months after the inflation data surprised by showing a slowdown.

The overall inflation rate registered at 4.99% in August, influenced by the drop in food prices. Banxico has indicated that its decision to lower the reference rate will depend on inflation trends. During the August meeting, Banxico’s Board of Governors agreed to cut the reference rate to 10.75%, down from 11% in a decision that sparked mixed opinions. The yields on Cetes follow the same trend as Banxico's interest rates.

What yields do Cetes currently offer? This week, all Cetes maturities showed a decline in their yields. The 28-day Cetes currently offer a yield of 10.49%, the 90-day ones hit 10.58%, the 175-day ones yield 10.60%, and the rate for the two-year maturities stands at 10.55%.

It’s important to note that the reduction in Cetes yields may lead some investors to consider diversifying into other financial instruments, especially if the inflation trend continues to decline. Staying alert to these changes is key to optimizing investment decisions and ensuring good long-term results.