MEXICO CITY, April 24 (Reuters) - Mexico's peso firmed on Thursday and bond prices fell after high inflation data reduced expectations that the central bank will lower borrowing costs any time soon.

The peso MEX01 strengthened 0.27 percent to 10.448 per dollar, nearing a two-year high, while long-term bond prices fell for the 10th straight day as investors bet against the central bank easing interest rates soon to fight an expected impact on Mexico by the U.S. economic slowdown.

The government's benchmark 10-year peso bond dropped 0.338 of a point in price to bid 99.649, pushing its yield up 5 basis points to 7.80 percent, a three-month high. Bond yields move inversely to prices.

Meanwhile, the benchmark IPC index .MXX fell 0.36 percent to 31,731 points, dragged down by losses in shares of telecommunications bellwether America Movil and mining companies. Stocks pared losses after the IPC fell more than 1 percent in early trade.

On Thursday, the central bank reported that higher costs for goods like tomatoes and chicken pushed consumer prices up 4.53 percent in the 12 months through April 15.

Full Story

Importance: Just some updates on essentials in the Mexican economy. There are some interesting global connections, and it the economic link between the U.S. and Mexico becomes very obvious...Though it does not seem that the Mexican central bank is allowing everything that happens in the U.S. effect its decisions.

GRADE THIS POST!!!!!!!!!!!