Mexico may issue yen-denominated bonds for the second time in 10 months, tapping into Japanese investors' growing demand for the higher yields offered on samurai bonds.
The Mexican government hired three banks to arrange investor meetings in Japan, according to a source. The 1.41 percent yield on Mexico's yen bonds due 2020 is 51 basis points, or 0.51 percentage point, more than that on Japanese government debt.
While that gap lures buyers looking for alternatives to near-zero benchmark Japanese rates, it's below the 179 basis-point spread Mexico is paying over Treasuries in the dollar market and less than the 204 basis-point premium over German bonds in the euro market.