(Corrects amount of bonds placed in headline, first paragraph)
MEXICO CITY, April 9 (Reuters) - 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 years.
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 billion).
$1 = 13.0555 Mexican pesos Reporting by Michael O'Boyle; Editing by David Gregorio