USDMXN appears stretched fort of 20.65 and indeed on Wednesday the pair tried and failed there before MXN outperformed broader based EM. Spot interest was more muted versus previous sessions. On the curve TIIE rallied alongside core yields but basis traded very bid. lm hovers towards 11% again and screens as quite expensive. Flows were skewed towards better payers of forward-forward mostly from hedge fund names as the strong bid in lrh continues to pressure spreads further out. Banxico comes on Thursday and the desk expects a 25bp cut. - UBS Strategy
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