Two-Year Treasury Certificates Offer the Best Yields Amid Interest Rate Adjustments

In the most recent auction of Treasury Certificates (Cetes), longer-term instruments stood out as the best alternative for investors, in an environment marked by interest rate adjustments by the Bank of Mexico (Banxico). While short-term rates saw declines, two-year Cetes yielded 8.65%, the most attractive return among these government debt securities, according to official data.

Yields on 28-day Cetes dropped to 7.65%, a decrease of 0.20 percentage points compared to the previous auction, reinforcing a downward trend that has persisted since the beginning of the year. Meanwhile, 91-day and 175-day Cetes stood at 7.97% and 8.07%, respectively, both seeing slight declines. This dynamic aligns with a gradual rate-cutting cycle from Banxico, whose benchmark rate now sits at 8% after its recent 25-basis-point reduction.

The expectation of further policy rate cuts in the months ahead has caused movements in debt instrument yields, especially on the shorter end of the curve. However, annual inflation remains at 4.32%, still above the official 3% target, which forces authorities to act cautiously so as not to erode the purchasing power of savers.

Against this backdrop, the Cetes Directo platform continues to establish itself as an accessible and trustworthy way for Mexican residents to invest in government instruments starting from small amounts. Operated by Nacional Financiera (Nafin) in coordination with the Ministry of Finance, the platform enables digital investments starting at 300 pesos, charges no commissions, and offers investor security—even during episodes of financial market volatility.

Investors’ preference for two-year Cetes may be due to the current environment of uncertainty and expectations for lower medium-term rates, as locking in a relatively high yield for an extended period could be a prudent strategy. Still, experts recommend ongoing evaluation of inflation trends and future monetary policy decisions, since both factors will impact the outlook for fixed-income instruments in Mexico.

In summary, while Cetes remain a relevant option for those seeking safe and accessible investment alternatives in the country, recent movements in their yields reflect these instruments’ sensitivity to macroeconomic adjustments. The future performance of Cetes will depend both on central bank actions and on the trajectory of inflation, making it essential for investors to actively monitor economic conditions.