Mexico's benchmark 28-day T-bill yield edged lower to 7.02 percent on Tuesday as investors bet the central bank will leave interest rates steady.

The rates on one-month, three-month and six-month paper all moved 1 basis point lower from last week at the central bank auction.

The yield on one-year paper fell to 7.42 percent, down 29 basis points from when it was last auctioned on April 10, and the rate on Mexico's 20-year peso bond fell 51 basis points over the same period to 8.68 percent.

Low inflation allowed Mexico's central bank to cut the benchmark overnight interest rate from 9.75 percent to 7 percent between August and April to give the economy a boost.

With rates rising in the United States and Europe, however, Mexico's central bank said at its last monetary policy meeting in late April that there was no room for further cuts.

Most economists had expected the central bank to halt its rate cuts ahead of Mexico's presidential election in July, although they are divided over when and in what direction rates might move later in the year.