Wednesday, 2 June 2010

Remittances to Mexico increase slightly for first time since '08

By Andres R. Martinez

June 1 (Bloomberg) -- Mexico’s peso bonds rose, pushing yields to the lowest level in almost three years, as rising remittances signaled the economic recovery is accelerating.

The yield on Mexico’s 10 percent peso bond due in 2024 fell five basis points, or 0.05 percentage point, to 7.54 percent at 5 p.m. New York time, according to Banco Santander SA, the lowest level since June 5, 2007. The price of the security rose 0.54 centavo to 121.63 centavos per peso.

“The downside risks are relatively lower than other global emerging markets,” said Aryam Vazquez, an emerging-markets economist at Wells Fargo & Co. in New York. “It’s a testament to the improved risk profile. Mexico’s economy is recovering better than what many expected.”

The currency dropped 0.3 percent to 12.9700 per dollar, from 12.9346 yesterday. The drop pared the peso’s gain this year to 0.9 percent against the dollar. Read more

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