Posted On: July 16, 2012
Mexican bond yields dropped to their all-time low on Monday, drawn down by a surprise slip in retail sales in the U.S last month, according to
The drop in June, which was the third consecutive month of losses, is damaging to Mexico since the U.S. purchases roughly four-fifths of exports shipped from Mexico. All eyes will be on U.S. Federal Reserve chief Ben Bernanke when he kicks off two days of congressional testimony beginning on Tuesday.
"The market is running with notion that there's stimulus in the pipeline," advisor Alejandro Urbina with Silva Capital Management in Chicago told the news source. "We've been getting bad economic data."
The central bank of the U.S. has indicated that continued economic hiccups in the globe's largest economy are likely to prompt intervention such as reduced borrowing costs to spur development and growth.
Stocks in Mexico on Monday also were suffering from poor economic data from the U.S., The Wall Street Journal reports
. China, whose economy trails the U.S. for size, warned that more signs of weakness are likely.
Category: Industry News
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