The Day at a Glance | April 26 2023

The Top

*The Ministry of Finance and Public Credit (SHCP for its initials in Spanish) carried out a liability management operation that reduced foreign currency-denominated debt by $368 million. 

*In the US, the sale of new homes continued to advance in March, reaching 683,000 units, the highest number in a year and implied a monthly 9.6% increase. 

*Consumer confidence in the US fell to 101.3 points in April from the previous 104.0. This decline was entirely due to a deterioration in expectations (68.1), as consumers are now more pessimistic about employment and business conditions going forward. 

*The manufacturing index of the Federal Reserve Bank of Richmond fell 5 points and set at -10.0 units. Likewise, the service sector indicator moved even further into negative territory, with a reading of -27.0 points. 

*Wholesale inventories in the US rebounded slightly in March by logging a monthly 0.1% increase. Additionally, durable goods orders recorded their second best reading since July 2020 (3.2%). 

Economic environment

The Mexican Ministry of Finance and Public Credit carried out a liability management operation in international markets. The goal of this was to take advantage of current market conditions in which foreign currency-denominated bonds with maturities between 2041 and 2052 were trading at a considerable discount. With this, investors were offered the possibility of exchanging these bonds for a new sustainable bond maturing in 2053. The exchange operation reached $1.591 billion and resulted in a debt reduction of $368 million. Regarding the new 30-year benchmark, its issuance reached $2.941 billion with a coupon rate of 6.338% and created demand worth $12.038 billion, equivalent to 4.1 times the amount placed.