Mbono-TIIE Spread: Dovish Outlook Suggest More Widening

We continue to call for a widening of the spread between Mexico's 10-Year Mbono and the December 2010 TIIE interest rate swap, which has already seen an increase of 53 basis points (bps), or 36.8% since flagging up this view on November 6 (see our online service for 'Mbono & TIIE Spread To Widen Further'). The spread has moved through the previous high of 174bps and is currently approaching the 200bps mark, highlighting two of our key views on the Mexican economy; persisting credit concerns by the market and a generally dovish interest rate outlook for Mexico.

To read the full article, please choose one of the following options: