Mexico Says Basta to Subasta

Mexico’s central bank refused to pay what investors offered for up to MXP15bn in off-the-run government bonds at auction Tuesday, electing not to buy any. Investors offered to sell MXP8.6bn in 8% of 2013 bonds at MXP97.3-MXP98.4. They offered MXP103.6-MXP104.7 on MXP10.3bn of 9.5% 2014 bonds and MXP95.8-MXP97.4 on MXP5.8bn in 8% of 2015s. The deal was to have been the first in a series of auctions to repurchase domestic bonds with 10-30-year maturities, as part of a MXP40bn liquidity stimulus plan. The government did not give any indication as to the status of future buybacks under the program.