Mexican bonds rise by 22%, institutions say "the trading is far from over"

Jin10 data reported on July 3, as emerging markets regained favor in the first half of this year, few trades have generated returns like investing in Mexican local bonds. According to compiled data, the Mbonos bonds issued by the Mexican government to finance public spending have provided a 22% yield for investors by 2025, ranking second only to Brazilian government bonds in the emerging market local bond index. Bets on Mexican policymakers continuing to cut interest rates, coupled with the resilience of the Mexican peso amid the Trump tariff war, have driven bond yields significantly lower. Companies like Aberdeen Group, Neuberger Berman, and Pictet Asset Management believe that there is still room for further rebound, as yields remain attractive, and traders anticipate that The Federal Reserve (FED) will ease monetary policy in the coming months. Gorky Urquieta, co-head of Neuberger’s emerging market debt, stated: “From a fundamental, technical, and interest rate valuation perspective, we still see reasons to hold positions.”