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CETES 28 days


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CETES are basically short term Mexican government bonds issued by the bank of Mexico.. Like govt bonds in any country they probably won't go away.  CETES have different maturities available 28, 91, 182, and 364 days.  There are also long term "bonds" of different types available for up to 30 year terms.

CETES  can be purchased direct so there is no commission. You can invest from $100 to $10,000,000 pesos

https://www.cetesdirecto.com/sites/portal/inicio

 

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  • 2 weeks later...

Interest rates continue to drop rapidly. A 210 day fixed investment made last November at Multiva paid out today at 7.25%. I rolled the proceeds into a 360 day CEDE at 4.74%. Twenty eight day instruments were still under 5% so the gamble is that rates will continue to fall for the foreseeable future. Of course now that the money is locked in for the next year interest rates will probably start to rise.

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Mexico dropped the prime rate again this week in hopes of stimulating the economy. 

 

Anuncio de Política Monetaria La Junta de Gobierno del Banco de México decidió disminuir en 50 puntos base el objetivo para la Tasa de Interés Interbancaria a un día a un nivel de 5%.

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Still better than the US where 1 year CDs are paying a hair above 1%. A 1 year T-bill is .15%.

Multiva does have a 90 day investment that's paying over 5% but when that's up, what's next?

One year CETES (different than CEDES) is paying 4.90% according to cetesdirecto.com.  However if you start the process of setting up a new account there, you'll probably cancel based on all the information they want from you. Very intrusive.

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The other big problem is the tax on investment accounts has risen to 1.45 percent per year of the account balance.  So we are getting hit by falling yields on the one hand and a near tripling of the tax which is the same regardless of earnings, on the other.

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