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Bank of Mexico cuts benchmark interest rate to 6.75%BY Reuters | ECONOMIC | 03:07 PM EDTMEXICO CITY, March 26 (Reuters) - The Bank of Mexico cut its benchmark interest rate by 25 basis points on Thursday, to 6.75%, in one of the most highly anticipated decisions by the central bank in recent years. The decision by the central bank's five-member governing board was 3-2, the bank said in a statement. (Reporting by Natalia Siniawski; Editing by Emily Green) More Fixed Income News
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss. Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. |
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