Mexico’s government bond market has delivered some of the strongest returns in the global bond market this year, in both local and dollar terms, reflecting resilient demand and attractive yields.
Outperforming Emerging Market Peers: Emerging market bonds overall are having a strong year, but Mexico is outpacing most peers.
Real Yields Remain Elevated: Inflation in Mexico is subdued, within the central bank’s comfort zone, while nominal rates are still high.
Lackluster Domestic Demand and a Challenging External Environment Are Weighing on the Business Climate
Wage Growth Slows: Slowing wage growth is weighing on consumption and service-sector inflation.
Remittance Slowdown Threatens Demand: A decline in remittances is likely to weigh on consumption, as these flows primarily support lower- and middle-income households with a high propensity to spend.
Credit Growth Slowing
Mexico Surpasses China in Supplying US Tech: Mexico recently surpassed China as the largest single tech supplier to the US economy.
Share this article: 
✉
Subscribe to Around the Curve and receive our latest global macroeconomic, fixed income, and equity views directly to your inbox.
Groupthink is bad, especially at investment management firms. Brandywine Global therefore takes special care to ensure our corporate culture and investment processes support the articulation of diverse viewpoints. This blog is no different. The opinions expressed by our bloggers may sometimes challenge active positioning within one or more of our strategies. Each blogger represents one market view amongst many expressed at Brandywine Global. Although individual opinions will differ, our investment process and macro outlook will remain driven by a team approach.
