Mexico Buys Fixed Income Dips

Mexico’s finance ministry has retired ahead of schedule $714m from 10 global bond series, with maturities ranging from 2009 to 2034. The move is part of its aim to reduce net foreign debt by $500m this year. The various transactions took place in “the last few weeks” and were financed with local market debt issuance and loans from international financial institutions, says Hacienda. “The volatility that has prevailed in the international markets during the last few weeks represented an opportunity to buy back specific off-the-run global bonds,” it says. The ministry notes that the 10 issues were considered among the more illiquid, and that it wished to decrease their importance on the yield curve relative to benchmark bonds.