Overview
- Final auction levels stood at 7.07% for 29 days, 7.24% for 91 days, 7.37% for 176 days, and 7.98% for two years, marking the lowest readings in about five years.
- The 29‑day rate ticked up 3 basis points from the prior auction, ending a three‑week slide that had totaled 25 basis points.
- Annual declines were the largest since 2020: 29 days down 297 bps, 91 days down 274 bps, 176 days down 257 bps, and two years down 241 bps.
- Banxico’s December 18 cut took the policy rate to 7.0%, anchoring a yearlong easing that pulled short‑term yields down from near 10% early in 2025.
- Auctions were heavily oversubscribed but capped near 9,000 million pesos per tenor, and analysts expect one or two additional rate cuts in early 2026 toward roughly 6.50%.