📝 Waiting to See If Mexican Peso Buying Continues: UBS Strategy

USDMXN is flat, unchanged just below 17.20. I'm curious to see if Tuesday's buying continues. In forwards, funding is slightly elevated, but there does not seem to be any shortage of pesos. It's just a market that gets nervous given the funding shocks of the past 1 or 2 months. In TIIE, expect a quiet open: the market seems to be selling 2s5slOs fly, which makes sense given 2y seems to be at the floor.

- UBS Strategy