High real yields underpin Mexican Peso demand despite Moody’s downgrade, says Rabobank

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Rabobank strategists Christian Lawrence and Molly Schwartz note that high real yields continue to underpin demand for the Mexican Peso, even after Moody’s downgraded Mexico’s rating to Baa3. They observe that 10-year MBono yields have fallen and that markets remain relaxed about Mexico’s investment-grade status.

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