Mexico central bank sells 3-month Cetes: average yield 7.95%

Mexico central bank sells 3-month Cetes: average yield 7.95%

The Mexican central bank sold 3-month Cetes (Certificados de la Tesorería) on July 2, 2025, with an average yield of 7.95%, according to market data. This sale follows recent trends in the Mexican economy and the central bank's monetary policy.

The 3-month Cetes are a key benchmark for short-term interest rates in Mexico. The average yield of 7.95% reflects the current market sentiment and the central bank's efforts to manage inflation. The sale comes amid expectations that headline inflation in Mexico is likely to slow down in the first half of July, according to a Reuters poll [1].

The poll, conducted by Reuters, indicated that the median forecast for annual headline inflation was 3.64%, down from 4.13% in the second half of June. This forecast places Mexico's inflation rate within the central bank's target range of 3%, plus or minus one percentage point. However, core inflation, which excludes volatile items, is expected to accelerate to 4.30%, the highest level since the middle of last year [1].

The central bank has been actively managing its benchmark interest rate. In June, the bank cut its key interest rate by 50 basis points to 8.0%. This decision was not unanimous, with Deputy Governor Jonathan Heath voting to leave the rate unchanged. The meeting minutes indicated that the bank could adopt a more gradual approach in future decisions [1].

The central bank has lowered its benchmark rate by 325 basis points since the start of 2024, as part of an easing cycle following a historic high of 11.25% in 2023. The next monetary policy decision is scheduled for August 7 [1].

The sale of 3-month Cetes at an average yield of 7.95% provides further insight into the Mexican financial landscape. As the central bank continues to manage inflation and interest rates, investors and financial professionals will closely monitor future developments.

References:
[1] https://money.usnews.com/investing/news/articles/2025-07-21/mexicos-headline-inflation-seen-returning-to-target-in-early-july-reuters-poll