From CETES to US Treasury bills

This lesson starts from CETES, the short term debt of the Mexican federal government, and maps them to Treasury bills, the short term debt of the United States government. It also covers Treasury notes, Treasury bonds and TIPS, and the points where the two systems differ.

What CETES are

CETES stands for Certificados de la Tesorería de la Federación, debt issued by the Mexican federal government since 1978. Banco de México acts as the placement agent.

CETES pay no interest along the way. They are sold at a discount, meaning below their nominal value (10 pesos in 2026, per Banco de México), and they pay that nominal value on the maturity date. The difference between what you paid and what you receive is the gain.

Cetesdirecto, the government platform operated by Nacional Financiera, lists CETES at terms of 28, 91, 182, 364 and 728 days. As of 2026, the platform states that securities can be bought from 100 pesos and that it charges no commission for opening or handling an account.

The Mexican federal government also issues longer instruments. Bonos M, the fixed rate development bonds, pay interest every six months at a rate fixed when they are issued. Udibonos are issued at 3, 10 and 30 years with a nominal value of 100 UDIs. A UDI, or unidad de inversión, is a unit of account whose peso value Banco de México publishes and which follows the national consumer price index, so Udibonos accrue in UDIs and are paid in pesos.

Treasury bills, the closest US counterpart

A Treasury bill is short term debt issued by the United States Department of the Treasury. Like a CETE, it pays its face value at maturity, with nothing paid in between. TreasuryDirect says bills are sold at a discount or at par (for exactly face value).

Treasury bills are sold in terms of 4, 6, 8, 13, 17, 26 and 52 weeks. As of 2026 the minimum purchase is $100 and purchases are made in increments of $100. Treasury securities are backed by the full faith and credit of the United States government.

You can buy them on TreasuryDirect, the Treasury's own website, or through a bank or a broker. For an individual, TreasuryDirect's requirements include being 18 or older, a Social Security number, a United States address of record, a US checking or savings account, and an email address.

Say you buy a $1,000 Treasury bill with a 26 week term and you pay $980 for it. On the maturity date you receive $1,000, and the $20 difference is your interest for the period. The exact price of a bill comes out of the auction.

Notes, bonds and TIPS for longer terms

Treasury notes are issued at 2, 3, 5, 7 and 10 years and pay a fixed rate of interest every six months until they mature. Treasury bonds run 20 or 30 years and also pay interest every six months.

TIPS, or Treasury Inflation Protected Securities, are sold at 5, 10 and 30 years. Their principal goes up with inflation and down with deflation, measured by the Consumer Price Index, and interest is paid every six months on the principal as it stands at that moment. At maturity you receive the inflation adjusted principal or the original principal, whichever is greater.

That inflation link is what brings TIPS closest to Udibonos, but they are different instruments: the currency, the price index and the rules for the principal are not the same.

Where the two systems differ

Currency is the first difference. CETES are peso instruments and Treasury securities are dollar instruments, so their results are measured in different money.

Selling early is the second. Cetesdirecto's operating rules let a holder request a venta anticipada (early sale) on the platform, within set time limits, at that day's market price, and its FAQ warns the price can be lower than what was paid. Treasury bills, notes, bonds and TIPS are marketable too, and can be sold before maturity at a market price that can be more or less than what was paid. A security held in TreasuryDirect must stay there 45 days and then be moved to a bank, broker or dealer to be sold.

Tax is the third. The IRS states that interest from Treasury bills, notes and bonds is subject to federal income tax and exempt from all state and local income taxes. For TIPS, federal tax is due each year on the interest, and a change in the principal during the year may affect federal taxes too.

When savings sit in two countries, tax, reporting or benefit rules can apply on both sides, and a licensed professional who knows both systems can help sort out which ones reach you.

What to remember

• CETES are Mexican federal government debt, sold below their nominal value (10 pesos in 2026) and paid at that value on the maturity date.
• Treasury bills are sold at a discount or at par and pay their face value at maturity, in US dollars.
• Treasury notes, Treasury bonds and TIPS cover the longer terms, and the principal of TIPS moves with the Consumer Price Index.
• A marketable Treasury security sold before maturity can be worth more or less than what was paid for it.
• Treasury interest is taxed federally and exempt from state and local income taxes, and rules in two countries can apply at the same time.