Mexico will join Citigroup, Inc (NYSE: C)’s World Government Bond Index (WGBI) in October after meeting requirements for inclusion for three consecutive months, the New York-based bank announced on Wednesday.
In a release from the company, Citigroup, Inc (NYSE: C) said that the Mexican Government Bond Index has satisfied size, credit and barriers to entry criteria as of its June 2010 profile. The lender said that eligible government bonds will also be included in October in the WorldBIG Index.
“It will become the first Latin American and the 24th government bond market to enter the WGBI, effective October 2010,” Citigroup’s statement said.
“The market value of the eligible MBonos is US$104.66 billion, which represents a proforma market weight of 0.65% in the WGBI,” the report states.
Citigroup, Inc (NYSE: C) announced back in march that it would monitor the bonds for three months beginning with its April 2010 index profile.
Entry into the WGBI “will trigger rates to keep falling, especially at the longer end of the curve,” said Gabriel Casillas, chief Mexico economist for J.P. Morgan to the press.
