PREVIEW-Mexico's 1-month Cetes yield seen flat

MEXICO CITY, Nov 3 (Reuters) - The yield on Mexico's
benchmark one-month Cetes treasury bills was seen unchanged at
Tuesday's weekly auction as investors expect the central bank
to hold interest rates steady through early next year.

The yield on 28-day bills was seen at 4.52 percent,
according to the average forecast of 10 dealers surveyed by
Reuters.

Mexico's central bank cut rates for much of this year to
fight a deep recession, taking its key rate to 4.50 percent.

Policymakers are now expected to increase borrowing costs
within the next year as the economy recovers, however, and a
tax hike boosts the rate of inflation. For more see
[ID:nN03496700].

Yields on longer-term Cetes were expected to also hold
steady, with the three-month yield seen flat at 4.63 percent.

The six-month T-bill yield was seen falling three basis
points to 4.90 percent.

Mexico's 20-year bond yield was seen at 8.53 percent, down
11 basis points from its previous auction on Sept. 22.

TERM PREVIOUS THIS WEEK'S EXPECTED

RATE SURVEY CHANGE

(pct) (pct)
28-DAY 4.52 28-DAY 4.52 0 bps
91-DAY 4.63 91-DAY 4.63 0 bps
175-DAY 4.93 182-DAY 4.90 - 3 bps
(Reporting by Lorena Segura; Editing by James Dalgleish)