Mexico Peso, Local Bonds Advance as Risky Asset Concerns Recede

“Mexicos peso rose the most in six weeks as higher prices for global stocks helped assuage concerns that investors will avoid riskier emerging-market securities.

Mexicos 10-year peso bonds also surged, coming off their biggest weekly retreat since the week ended June 8, on expectations slowing inflation in Mexico will allow central bankers to hold off from raising borrowing costs this year. Yields on the benchmark bond rose 12 basis points last week on speculation the rout in subprime mortgages in the U.S. would spread to other assets.”

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