Mexico plans buyback of $3 billion in bonds

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MEXICO CITY -- Mexico is buying back $3 billion in 10- to 30-year fixed-rate government bonds to boost liquidity.

Credit lines have seized as foreign investors pull assets from Mexico to cover losses at home. The Mexican peso has lost more than 25 percent of its value since August, causing companies to post huge losses on currency bets.

Those bets have further dried up already-tight credit markets.

The Treasury Department said Thursday that it will buy back bonds early, injecting cash into the Mexican credit market.

The buyback plan is in addition to Monday's announcement by the central bank to buy back as much as 150 billion pesos ($18 billion) in government debt.