Citi Welcomes Mbonos to World Index

Mexico’s government bonds are eligible for inclusion into Citi’s World Government Bond Index, Citi says. A group of 19 series – totaling about $100bn – should gain entry in October, if they continue to meet size, credit and barriers to entry requirements for 3 consecutive months. Mexico’s government has sold MXP25bn in domestic 8.0% of 2020 and MXP15bn in domestic 4% of 2040 inflation-indexed bonds this year through a new syndication method. The program is designed to allow instant benchmark-size liquidity, attract foreign investors, and attain eligibility for indices such as Citi’s. Mexico would be the first LatAm country to enter the index. Its estimated weight in the WGBI would be 0.64%.