(Corrects amount of bonds placed in headline, first paragraph)
MEXICO CITY, April 9 Mexico placed 15 billion
pesos ($1.15 billion) of a 20-year peso-denominated bond on
Wednesday, the central bank said.
The bond, with a coupon of 7.75 percent, priced at 107.23876
pesos, the central bank said.
CitiFX said the yield came in at 7.08 percent, and traded
stronger at 7.07 percent after minutes from the Federal
Reserve's policy meeting in March assured investors of low U.S.
rates for some time.
President Enrique Pena Nieto is financing Mexico's biggest
deficit since the 1990s to boost growth this year after the
economy grew 1.1 percent in 2013, its slowest pace in four
Demand for emerging market debt has been hurt by concerns
about a withdrawal of U.S. monetary stimulus, but foreign
holdings of Mexican debt have held steady at record levels.
Mexico, with one of the most liquid local currency bond
markets among emerging economies, has been a favorite bet for
global investors, who have raised their holdings of peso debt
seven times since 2008 to nearly 1.9 trillion pesos ($145.5
($1 = 13.0555 Mexican pesos)
(Reporting by Michael O'Boyle; Editing by David Gregorio)