Potentially unsustainable financial imbalances in that country have also raised concerns. As a result, since the middle of 2014, net capital flows to emerging markets have declined, commodity prices have fallen sharply, and most currencies have depreciated against the U.S. dollar.
In this scenario, the Mexican peso has weakened significantly, stressed in particular by faltering oil prices and production, while the yield curve has seen a moderate upward shift, probably in anticipation of the start of U.S. monetary normalization. The share of nonresident holdings of peso-denominated government securities in the total outstanding  3  See Texas Department of Transportation (2013).