Financial cost of public debt fell 6.4% in the first two months: SHCP

The appreciation of the peso on liabilities denominated in foreign currency and the cut in the reference rate of the Bank of Mexico (BdeM) decreased the country’s spending to amortize its public debt. Until February, not only was the financial cost of public obligations reduced by 6.4 percent, but yields on Treasury instruments fell by up to a third.

According to reports from the Ministry of Finance and Public Credit, in the first two months of the year, 157,153.7 million pesos were allocated to pay the interest on the public debt, an amount that was not only less than that spent last year, but was also 5 billion pesos less than what was scheduled.

The reduction occurred both in the cost of obligations in foreign currency, exposed to movements in the exchange rate, and in domestic debt, in which the central bank’s reference rate is imposed. When compared to what was recorded in the first two months of last year, the decreases in the financial cost expenditure were 7.2 and 5.8 percent, respectively.

According to BdeM data, the exchange rate to settle obligations went from an average of 20.51 pesos per dollar in the first two months of last year, to an average of 17.50 pesos between January and February 2026, which implies an appreciation of 14.7 percent.

At the same time, the central bank rate – which serves as a reference for the cost of credit – continues to decline. In January of last year it was at 10 percent, before dropping to 9.5 percent in February, both above the 7 percent at the beginning of this year.

“In the first two months of the year, the financial cost decreased 6.4 percent in real terms annually, in the context of the progress of the fiscal normalization process and the effect of the appreciation of the exchange rate on liabilities denominated in foreign currency. In comparison with the program, the interest payment was lower by 5 billion pesos,” the Treasury noted when publishing the reports.

Yields fall

However, the cut in the interest rate is also affecting the yields paid on the federal government’s debt.

Only in Treasury certificates (Cetes), the yields on shorter-term placements – 28 days – were 9.45 percent on average during February of last year.

Meanwhile, placements of the same instrument in the second month of 2026 did not exceed 7 percent, with an average of 6.86 percent for the four February issues, the agency’s reports show.