Bloomberg -
By Valerie Rota April 25 (Bloomberg) -- Mexico's benchmark bond headed
for the biggest weekly decline in more than a year after a re****t
yesterday showed annual inflation rose, prompting traders to scrap
bets central bankers will cut borrowing costs this year.
The yield on the security maturing in 2024, the country's most
actively traded bond, rose to its highest since January. Annual
inflation quickened to 4.53 percent in the first 15 days of April, the
fastest pace since May 2005, the central bank said. Twelve-month
inflation was 4.25 percent in March.
``With inflation at this level, a rate cut is not something to be
considered,'' said Eduardo Perez, who oversees $5 billion at insurance
company Grupo Nacional Provincial SA in Mexico City. ``We're going to
see an additional increase in yields.''
Yields on the 10 percent bonds due December 2024 rose 8 basis points,
or 0.08 percentage point, to 7.99 percent at 11:28 a.m. New York time.
The yield has risen 24 basis points this week, the biggest increase
since the period ending Jan. 12, 2007. The bond's price today fell
0.79 centavo to 118.41 centavos per peso, according to Banco Santander
SA.
http://www.bloomberg.com/apps/news?pid=20601086&sid=aTBnbh4Pr8xw&refer=latin_america
|
