The Mercado Mexicano de Derivados has introduced a 20-year government bond future. The exchange said the new contract, which was launched on June 22, is primarily targeted at the domestic market but the bourse also expects interest from international market participants.

The South American exchange said the launch was designed to offer traders direct exposure to the yield curve with a range of maturities up to 20-years.

Speaking to Futures and Options Intelligence, Jorge Alegria, MexDer’s chief executive in Mexico City, said that the contract is likely to be “primarily used for hedging” and that “the hedging of bonds by foreigners has been quite steady” recently.

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