During most of the second half of 2021, international investors continued to add to their positions in Peru Soberanos, although activity was muted in November, and positions were decreased in December from PEN65.2bn to PEN63.3bn. In percentage terms, foreigners’ holdings moved from 50.8% to 49.4%. Of particular note, Soberanos 32s and 29s experienced the largest reduction in holdings, while Soberanos 37s and 40s saw relatively small increases. During December, Soberanos bonds at the front and long end of the curve slightly outperformed bonds in the belly, reflecting some of the position shifting by foreigners. During December, pension funds and banks were the main buyers and foreigners the main sellers. Political uncertainties could have been a major factor prompting foreigners to reduce their holdings of Soberanos during the first half of the year, but this trend changed during the second half, and after the ups and down, year-over-year holdings remained pretty much flat.