(Bloomberg) -- Mexico’s pension funds are selling government bonds as they prepare for faster inflation, clashing with foreign investors such as Pacific Investment Management Co. who have bought the debt to profit from an oil-led growth boom.

The peso-denominated fixed-rate bonds, known as Mbonos, accounted for 17 percent of pension holdings as of November, the least since at least 2008 and less than 19.6 percent a year earlier, according to regulatory data. Pensions now hold 14 percent of the debt, versus 57 percent for foreigners, according to data from the central bank.

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