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Economic directions

18 May 2011

Investors are piling into Mexican bonds as a record gain in the peso keeps price increases near a five-year low and bolsters dollar-based returns on local assets. Neighboring Brazil and Peru are seeking to stem advances in their currencies while struggling to keep inflation below their targets.

(Peso’s Advance Has Foreigners Piling Into Fixed-Rate Bonds: Mexico Credit,  Bloomberg 17 May 2011).

Perhaps “neighboring” means something special in bond markets, or at Bloomberg, but for those of us uninitiated in the arcana of this field, the word usually means something a little closer than within the same hemisphere.

4 Comments leave one →
  1. kwallek permalink
    18 May 2011 5:16 am

    We in the western hemisphere are all Americans, we live under different governments but Americans none-the-less. Americans come in different political bents as all humans do, it shows in our different governments and yes, we are very much neighbors. Not all neighbors get along…

  2. otto permalink
    18 May 2011 6:26 am

    Nah, doesn’t mean anything special in the market. You should be glad they didn’t call Mexico part of South America this time, surprising how many times that chestnut comes up. Bloomie hacks have always been, are and will be dumbasses. We’re used to it, sadly.

  3. 18 May 2011 8:32 am

    It is worded strange, but I read it as Brazil and Peru being the neighboring countries.

  4. "Craig" permalink
    18 May 2011 9:56 am

    A constant irritant is the failure to include Mexico in “North America.” So, if you are buying maps and it says “All of North America” that means Canada and the US. If you are looking at “North American data,” Canada and the US.

    And then Mexico is dumped into “Caribbean Countries” or “Central America” or just missing in action. Very annoying. Failure of geography education in grade school, I guess.

    Anyway, back to the topic: Bloomberg is not famous for geography, but reviewing financial data. In their tables, Brazil and Mexico are likely side-by-side in financial fundamentals and they don’t speak English, therefore they must be “neighbors.” Peru is harder to understand. Their economy doesn’t have the size or influence of Mexico or Brazil. Well, they speak Spanish.

    But heck, they are all South of the Border and everything “down there” is related… Neighbors = don’t speak English, “down there somewhere”, and we’re going to compare economies whether there are reasons to do so or not.

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