Teacher Strike Imperils Pimco's Bond Bet

Foreign investors like Pimco leapt into Mexico's bonds. Now that President Pena Nieto's reforms are facing serious opposition, those investments look risky.

For Pedro Hernandez, a striking elementary-school teacher from the southern state of Oaxaca, his union’s protests disrupting Mexico’s capital aren’t just about education. They’re about stopping President Enrique Pena Nieto.

“We’re against all the structural reforms,” the 37-year-old said last week as he walked down Mexico City’s central boulevard as part of an organized march of 15,000. Hernandez held a sign that read “Mexico has no president.”

The strain on police resources also caused a professional soccer game to be postponed, the daily Reforma reported last week on its website. Pena Nieto’s government cited protesting teachers as a reason the president pushed off his state of the union speech to yesterday from Sept. 1.

After rescheduling last month’s education vote until later this week, Mexico’s lower house of Congress on Sept. 1 accelerated the tally to that night. The bill passed with 390 votes in favor and 69 against.

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