Banxico Unveils Q3 Bond-Buying Tool for 2 Government Securities
Updated
Updated · Bloomberg · Jun 29
Banxico Unveils Q3 Bond-Buying Tool for 2 Government Securities
2 articles · Updated · Bloomberg · Jun 29
Summary
Mexico’s central bank said it may start buying government debt in the secondary market in the third quarter to support money-market liquidity if conditions deteriorate.
Banxico’s new rules cover 2 instruments—zero-coupon Cetes and floating-rate Bondes F—and frame the tool as a backstop if investors are forced to sell Mexican assets.
Any purchases will depend on the bank’s liquidity forecasts and market conditions, with the maximum potential amount to be published each quarter in its government securities auction program.