Money is pouring into Mexico...

The US government is far from the only beneficiary of the money pouring into the bond markets. If there is a "bond bubble" being inflated, the "emerging markets" are part of it.

Mexico, like other "emerging markets" countries, is the recipient of portfolio investment inflows that are strengthening the currency. That demand for the one hundred bond Mexico placed on October 5 was 2.5 times the billion dollars raised says everything that needs to be said about investors' appetite for emerging market debt instruments.

The one-month Cete rate is posting new historical lows each week. In today's primary auction, the government's paid 4.03% for 28 day funding. Not only is that a new low, it is below the central bank's 4.50% reference rate.