Banxico to Expand Liquidity Tools in 3Q26 with Cetes, Bondes F

Mexico’s central bank (Banxico) will incorporate purchase operations purchases of Cetes (Treasury Certificates) and Bondes F (Development Bonds) into its liquidity management toolkit beginning in the third quarter of 2026 (3Q26), the bank announced. Banxico said the operations will be conducted only when money market liquidity conditions warrant intervention, based on its internal liquidity forecasts and prevailing financial market conditions. 

"These operations have the sole purpose of strengthening the implementation of monetary policy through the efficient management of the financial system's liquidity," Banxico said in an official statement.

The central bank, led by Governor Victoria Rodríguez Ceja, said that the measures are intended to support the proper functioning of the money market. It expects the operations to help ensure that the overnight interbank interest rate — the operational target of monetary policy — remains aligned with the benchmark rate set by the Governing Board. Banxico emphasized that the new purchase operations do not alter the current monetary policy stance but instead expand the range of instruments available to implement it effectively.

Under the updated framework, Banxico will disclose the maximum volume of purchases that may be conducted during each period under the Government Securities Auction Program for each quarter. The execution of these operations will depend exclusively on the central bank's internal liquidity projections and its assessment of broader financial market conditions.

Secondary Market Auction Rules Ammended

The operational expansion follows regulatory changes announced last week, under which Banxico introduced an auction mechanism for purchasing government securities and Monetary Regulation Bonds (Brems) in the secondary market. According to amendments to Circular 8/2026, published in the Official Journal of the Federation (DOF), the central bank will use purchase and sale auctions as an additional instrument to support the orderly functioning of the financial system and safeguard the public interest.

Banxico said the amendments are designed to strengthen the implementation of monetary policy by incorporating auctions as an additional operational tool. The revised framework also shortens the notice period required before each auction, allowing the central bank to respond more quickly to changes in liquidity conditions. The shorter notice period is intended to reduce the lag between market developments and central bank intervention, improving the effectiveness of liquidity management across the banking system.