How to Invest in CETES (Mexican Government Bonds) as a Foreigner (2026)
Published: August 8, 2026 | Reading Time: ~11 minutes
When the Banco de Mรฉxico (Banxico) raises interest rates to combat inflation, one investment becomes particularly attractive: CETES (Certificados de la Tesorerรญa de la Federaciรณn), Mexico's equivalent of US Treasury bills. These short-term government bonds offer some of the highest yields among investment-grade sovereign debt globally, backed by the full faith of the Mexican government.
For foreigners living in Mexico or international investors seeking high-quality fixed income exposure, CETES present a compelling opportunity. With yields historically ranging from 8% to 11% annually in recent years — compared to 4% to 5% for US Treasuries — CETES offer significantly better returns for essentially similar credit quality (Mexico is investment-grade rated by major agencies).
However, accessing CETES as a foreigner involves specific requirements and considerations around currency risk, tax treatment, and platform access. This guide walks through everything you need to know to invest in CETES and related Mexican government securities in 2026.
What Exactly Are CETES?
CETES are short-term debt instruments issued by the Mexican federal government through the Tesorerรญa de la Federaciรณn (Federal Treasury). They function essentially like US Treasury bills — you lend money to the government for a fixed period, and receive your principal plus interest at maturity.
CETES are sold at discount to face value and mature at par. If you buy a MXN 100 CETES at a discount price of MXN 95, you'll receive MXN 100 at maturity — the MXN 5 difference is your return. This discount structure is standard for money market instruments worldwide.
CETES come in four standard maturities: 28 days (roughly one month), 91 days (roughly three months), 182 days (roughly six months), and 364 days (roughly one year). The Mexican government auctions CETES weekly, typically on Tuesdays, with settlement the following Thursday.
Because CETES are backed by the Mexican federal government and denominated in pesos, they carry the sovereign credit risk of Mexico but no corporate or individual borrower risk. Mexico holds investment-grade ratings from major agencies — BBB+ from S&P, Baa1 from Moody's, and BBB- from Fitch — placing it in the same broad category as many established emerging market economies.
Why CETES Yields Are So Attractive
Mexico's interest rates have been significantly higher than those of developed economies for years, reflecting the country's inflation history, monetary policy framework, and risk premium. When Banxico's benchmark rate (tasa de interรฉs interbancaria de equilibrio) sits at 9% to 11%, CETES yields naturally track close to these levels.
To put this in perspective: a one-year CETES yielding 10% annually means you earn 10% on your pesos over 12 months. If you invested USD 10,000 converted to pesos at an exchange rate of MXN 17 per dollar, you'd have MXN 170,000 invested. After one year at 10%, you'd have MXN 187,000 — roughly USD 11,000 if the exchange rate stays constant.
The catch, of course, is the currency risk. If the peso weakens from 17 to 19 per dollar during your holding period, your USD equivalent return drops significantly. This currency dynamic is the fundamental consideration for foreign investors in Mexican fixed income.
How to Buy CETES: The Cetesdirecto Platform
The Mexican government created Cetesdirecto (cetesdirecto.com) specifically to allow retail investors to buy government securities directly, bypassing banks and brokers. This platform offers several advantages: no commissions, no account maintenance fees, and the ability to invest with as little as MXN 100.
To open a Cetesdirecto account, you need a CURP, RFC, valid Mexican identification, proof of address, and a Mexican bank account. For Mexican residents, this is straightforward. For foreigners with temporary or permanent residency, the same documents apply — your residency card and CURP (obtained after immigration registration) satisfy the identification requirements.
The account opening process is entirely online and typically takes one to three business days for approval. Once approved, you can transfer money from your Mexican bank account via SPEI and begin purchasing CETES immediately.
On Cetesdirecto, you can buy CETES at the weekly auction (every Tuesday) or in the secondary market at any time. You can also set up automatic reinvestment, so your maturing CETES roll over into new ones without manual intervention — a feature particularly useful for building a "ladder" of staggered maturities.
Beyond CETES: UDIBONOS and BONOS
While CETES are the most well-known Mexican government securities, the Treasury issues several other instruments worth understanding.
UDIBONOS (Unidades de Inversiรณn Bonos) are inflation-linked bonds denominated in UDIs (Investment Units), a unit of account that adjusts daily with inflation. UDIBONOS pay a real interest rate plus inflation adjustment, effectively protecting your purchasing power. They're similar to US TIPS (Treasury Inflation-Protected Securities). UDIBONOS come in maturities of 3, 5, 10, 20, and 30 years.
BONOS are longer-term fixed-rate government bonds with maturities of 3, 5, 10, 20, and 30 years. They pay semi-annual coupons and are the Mexican equivalent of US Treasury notes and bonds. BONOS are popular with institutional investors and those seeking longer-duration fixed income.
For beginners, CETES are the simplest entry point. UDIBONOS make sense if you're concerned about inflation eroding your returns. BONOS suit investors with longer time horizons who want to lock in current yields for extended periods.
All three instruments are available through Cetesdirecto and through brokerage accounts at GBM+, Actinver, and other casas de bolsa.
Accessing CETES Without Cetesdirecto
If you prefer using a brokerage account (perhaps because you already have one for stock investing), you can also buy CETES, UDIBONOS, and BONOS through your casa de bolsa. The process is similar to buying stocks — you search for the instrument, place an order, and the security settles into your account.
Brokerages typically charge small commissions for government bond trades, usually 0.05% to 0.15% of the transaction value. This is slightly more expensive than Cetesdirecto's zero-commission model, but convenient if you're consolidating all investments in one account.
Some brokerages also offer government bond mutual funds (fondos de deuda gubernamental) that hold portfolios of CETES, UDIBONOS, and BONOS. These funds provide professional management, automatic diversification across maturities, and liquidity — you can sell fund shares any business day rather than waiting for individual bond maturities. However, funds charge management fees (typically 0.5% to 1.5% annually) that reduce net returns.
Understanding the Tax Treatment
Mexican government securities receive favorable tax treatment compared to other investments, which is part of their appeal.
For Mexican tax residents, interest earned on CETES, UDIBONOS, and BONOS is subject to a withholding tax of approximately 0.5% to 1.5% (the rate varies based on the instrument and holding period), which is withheld automatically by your brokerage or Cetesdirecto. This withholding is typically your final tax obligation on this income for most individual investors.
Capital gains from selling government securities before maturity are taxed similarly, with a small withholding applied at the time of sale. The tax rates are significantly lower than the 10% capital gains rate applied to stocks, making government bonds particularly tax-efficient.
For non-resident foreigners, the tax treatment depends on whether Mexico has a tax treaty with your home country. Under many treaties, Mexican government bond interest may be exempt from Mexican withholding tax or subject to reduced rates. US citizens, for example, may benefit from treaty provisions, though the US-Mexico tax treaty has specific provisions that should be reviewed with a cross-border tax specialist.
The Currency Risk Question
The single most important consideration for foreign investors in CETES is currency risk. When you convert dollars to pesos to buy CETES, you're taking two positions simultaneously: a bet on Mexican interest rates and a bet on the peso-dollar exchange rate.
Historically, the Mexican peso has been relatively stable against the dollar compared to other emerging market currencies, but it certainly fluctuates. During periods of global risk aversion, the peso can weaken significantly. During periods of strong Mexican economic performance and attractive yields, the peso can strengthen.
Consider a practical example. You invest USD 10,000 in CETES yielding 10% annually. If the peso stays flat at MXN 17 per dollar, you earn USD 1,000 in interest. But if the peso weakens to MXN 18.50 per dollar over the year, your MXN 187,000 converts back to only about USD 10,108 — a mere 1% dollar return despite the 10% peso yield.
Conversely, if the peso strengthens to MXN 16 per dollar, your MXN 187,000 converts to USD 11,687 — a 16.87% dollar return, boosted by currency appreciation.
For foreigners living in Mexico and spending in pesos, this currency risk is less relevant — you're already peso-denominated in your daily life. For foreigners maintaining dollar-based lives, the currency consideration is critical.
Building a CETES Ladder Strategy
One popular strategy for CETES investing is building a "ladder" — a portfolio of CETES with staggered maturities that provides regular liquidity while capturing attractive yields.
For example, you might divide your investment into four portions: 25% in 28-day CETES, 25% in 91-day CETES, 25% in 182-day CETES, and 25% in 364-day CETES. As each portion matures, you reinvest it into the longest maturity (364 days), maintaining your ladder structure.
This approach provides liquidity every month (as 28-day CETES mature) while locking in higher yields on longer maturities. If interest rates rise, your shorter maturities reinvest at the new higher rates. If rates fall, your longer maturities continue earning the previously locked higher yields.
Cetesdirecto's automatic reinvestment feature makes ladder management straightforward — you can set each maturity to automatically roll over into new CETES of the same term.
CETES vs Mexican Savings Accounts
Some foreigners wonder whether they should use CETES or simply keep money in Mexican savings accounts offering high interest rates. The comparison is worth understanding.
Mexican banks like Nu Mรฉxico, Ualรก, and others offer savings accounts with attractive interest rates — sometimes 10% to 15% annually on smaller balances. These rates can actually exceed CETES yields for modest amounts.
However, there are important differences. Bank savings accounts are insured by the Instituto para la Protecciรณn al Ahorro Bancario (IPAB) up to approximately MXN 3.2 million (roughly USD 180,000 at current exchange rates). Beyond this, your money isn't guaranteed. CETES, as government obligations, don't have this limit — the full amount is backed by the Mexican government.
Additionally, bank interest rates can change at any time, while CETES lock in your rate for the full term. And bank interest is typically taxed at higher rates than government bond interest.
For amounts within IPAB insurance limits, high-yield savings accounts can be competitive or even superior to CETES. For larger amounts or for longer-term rate certainty, CETES provide advantages.
Risks to Understand
While CETES are among the safest investments available in Mexico, they're not risk-free. Understanding the real risks helps you invest with appropriate expectations.
Credit risk is minimal but not zero. Mexico is investment-grade, but emerging market sovereign debt carries more risk than US Treasuries or German bunds. A severe fiscal crisis or political instability could theoretically affect Mexico's ability to service debt, though this scenario is considered unlikely by most analysts.
Interest rate risk affects longer-term instruments more than CETES. If you hold 30-year BONOS and interest rates rise significantly, the market value of your bonds falls. CETES, with maturities of one year or less, are largely insulated from this risk — you simply reinvest at current rates when they mature.
Currency risk, as discussed, is the primary concern for foreign investors. The peso's value against your home currency can significantly affect your real returns.
Inflation risk is partially addressed by UDIBONOS, which adjust with inflation. Fixed-rate CETES and BONOS lose purchasing power if inflation exceeds their yield, though current yields typically exceed inflation.
Practical Steps to Get Started
If you've decided CETES fit your investment strategy, here's the practical path forward.
First, ensure you have all required documents: CURP, RFC, valid Mexican identification (resident card or passport), proof of address, and a Mexican bank account. If you're missing any of these, obtain them before attempting to open a Cetesdirecto account.
Second, open your Cetesdirecto account at cetesdirecto.com. The online application takes about 30 minutes, with verification typically completing within one to three business days.
Third, fund your account via SPEI transfer from your Mexican bank. Start with an amount you're comfortable leaving invested for your chosen term.
Fourth, place your first CETES order. You can buy at the weekly Tuesday auction or in the secondary market. For beginners, the auction process is straightforward — you specify the amount and term, and Cetesdirecto handles the rest.
Fifth, consider setting up automatic reinvestment for a hands-off ladder strategy. This ensures your money stays invested without manual intervention.
Comparison: CETES vs Other Government Bonds
| Instrument | Maturities | Inflation Protection | Best For |
|---|---|---|---|
| CETES | 28, 91, 182, 364 days | No | Short-term, high liquidity |
| UDIBONOS | 3, 5, 10, 20, 30 years | Yes (UDI-linked) | Inflation protection |
| BONOS | 3, 5, 10, 20, 30 years | No | Long-term fixed income |
| Bond funds | Varies by fund | Depends on holdings | Convenience, professional mgmt |
Frequently Asked Questions
Can non-resident foreigners invest in CETES? It's difficult but not impossible. Cetesdirecto requires Mexican residency documentation. Some brokerages may accept non-resident clients with additional paperwork. Most non-residents access Mexican government debt through Mexican bond funds or ETFs listed internationally.
What's the minimum investment? Cetesdirecto allows investments starting from MXN 100 (roughly USD 5-6). This makes CETES accessible to virtually anyone.
How do CETES yields compare to US Treasuries? CETES yields are typically 5 to 7 percentage points higher than equivalent US Treasuries. This reflects Mexico's higher inflation, monetary policy rates, and emerging market risk premium.
Are CETES liquid? Yes, CETES can be sold in the secondary market before maturity through Cetesdirecto or your brokerage. However, selling before maturity may result in a small loss or gain depending on current interest rates. Holding to maturity guarantees your expected return.
What happens if the peso crashes? Your peso investment loses value when converted back to dollars. This is the fundamental currency risk. Some investors hedge this risk using currency forwards or options, though hedging adds cost and complexity.
Can I hold CETES in my retirement account? In Mexico, retirement accounts (AFORES) typically don't hold individual CETES directly, though they may hold government bond funds. If you're building a personal retirement portfolio, CETES can be a component, but consider consulting a financial advisor about appropriate asset allocation.
© 2026 | Mexico Expat Finance Guide | Informational purposes only