The Central Bank of Mexico published frequently asked questions on changes to its auction rules that will allow it to buy government securities in the secondary market for monetary regulation purposes. The amendment to Circular 6/2012, introduced through Circular 8/2026 and effective from Aug. 17, adds a long-term liquidity provision tool to complement existing short-term open market operations and existing long-term sales of securities. The stated aim is to address liquidity shortages more permanently and keep the overnight interbank funding rate close to the central bank’s operational target, which is currently 6.5%. The purchases will be limited to CETES and Bondes F and will be conducted through competitive auctions, mirroring the existing framework for sales of securities used to withdraw liquidity. Each quarter, the central bank will announce the maximum amount it may buy in the following quarter, alongside the maximum amount it may sell, while actual operations will depend on money market liquidity conditions. Eligible participants include banks, brokerages, investment funds and SIEFORES. The central bank said the operations are solely for liquidity management, are not a quantitative easing or yield curve control program, are not intended to finance the public sector, and are not expected to affect long-term nominal or real fixed-rate yields or the federal government’s financing costs. From now on, the quarterly announcements on monetary regulation operations will also include the maximum amount of CETES and Bondes F that the central bank may purchase during the next quarter.
Central Bank of Mexico2026-06-29
Central Bank of Mexico explains new auction based purchases of CETES and Bondes F for liquidity management
The Central Bank of Mexico published FAQs on a new framework that will let it buy CETES and Bondes F in the secondary market to address liquidity shortages and keep the overnight interbank rate near its 6.5% target. The tool takes effect on Aug. 17 and will operate through competitive auctions, with quarterly announcements of the maximum amount that may be purchased. The central bank said the measure is for liquidity management only, not quantitative easing, public sector financing or support for long-term bond yields.