Investors Reap 22% Gain as Big Rally Sweeps Mexico’s Peso Bonds

With emerging markets back in favor in the first half of the year, few trades have paid off like piling into Mexican local bonds.

Mbonos, which the government issues to finance public spending, have handed investors a 22% gain in 2025, trailing only Brazilian government bonds in an index of emerging-market local debt, according to data compiled by Bloomberg. Bets that Mexican policymakers would keep cutting interest rates and a resilient peso in the face of Donald Trump’s tariff war have sent yields plunging.

To firms including Aberdeen Group Plc, Neuberger Berman and Pictet Asset Management Ltd., the ...