International bonds: Mexico, 5.750% 12oct2110, USD (US91086QAZ19) (2024)

FAQs

How much do Mexican bonds pay? ›

The Mexico 10Y Government Bond has a 10.357% yield. Central Bank Rate is 11.00% (last modification in March 2024).

“Mexican Government Bonds” means any debt securities issued by the United Mexican States (“ Mexico” ), that are Mexican Peso-denominated, including, but not limited to, CETES, Bondes D, UDIBONOS, and BONOS.

CETES are considered the safest investment in Mexico. These bonds are fully secured by the federal government, which has never defaulted on CETES interest payments.

Starting Feb. 13, investors in the U.S. will be able to purchase the Mexican bonds in denominations of $1,000 from a network of brokerage firms including Charles Schwab, Merrill Lynch and Morgan Stanley. The bonds will be available in various maturities, ranging from about three years to 10 years.

For instance, if you invested $1,000 in a 10-year bond with a coupon rate of 4%, the issuer would send you a coupon (interest) payment of $40 every year. Most bonds pay twice a year, so you would receive two checks for $20 each.

10 Year Treasury Rate is at 4.70%, compared to 4.65% the previous market day and 3.43% last year. This is higher than the long term average of 4.25%.

If bond yields rise, existing bonds lose value. The change in bond values only relates to a bond's price on the open market, meaning if the bond is sold before maturity, the seller will obtain a higher or lower price for the bond compared to its face value, depending on current interest rates.

Bonds are an investment product where you agree to lend your money to a government or company at an agreed interest rate for a certain amount of time. In return, the government or company agrees to pay you interest for a certain amount of time in addition to the original face value of the bond.

For example, a $10,000 bond with a 10-year maturity date and a coupon rate of 5% would pay $500 a year for a decade, after which the original $10,000 face value of the bond is paid back to the investor. Like any investment, bonds have pros and cons.

Who pays the bonds? ›

Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.

Foreign bonds may offer higher yields than domestic bonds and diversify the portfolio. However, these benefits should be weighed against the risk of loss from unfavorable foreign exchange moves, which can have a significant negative impact on total returns from foreign bonds.

Aaa (Moody's) and AAA (S&P) are the highest credit ratings. Ratings better than BBB (S&P) and Baa (Moody's) are considered to be "investment grade." Bonds that are rated below investment grade (that is, BB or lower by S&P, Ba or lower by Moody's) are sometimes called "junk" bonds.

The Mexico 5 Years Government Bond has a 10.470% yield (last update 29 Apr 2024 2:16 GMT+0).

Mexico Deposit Interest Rate is at 2.57%, compared to 0.85% last year. This is lower than the long term average of 17.78%.

Basic Info. 5 Year Treasury Rate is at 4.57%, compared to 4.64% the previous market day and 3.37% last year. This is higher than the long term average of 3.75%. The 5 Year Treasury Rate is the yield received for investing in a US government issued treasury security that has a maturity of 5 years.

The current composite I bond rate is 4.28%. This includes a 1.30% fixed rate and a 1.48% inflation rate. The current rate applies for six months to bonds purchased between May 1, 2024, and Oct. 31, 2024. After that, the interest rate may be adjusted.