After three months of seemingly being on the side-lines, in February foreign investors returned to the TES market as active buyers, increasing their TES positions by about COP1.5trn. Their holdings reached COP100.1trn – some 24.4% of the total. Although this is a similar proportion to previous months, the overall amount held increased as a result of the recent net issuance of c.COP9.4trn. During the month, the Ministry of Finance and international investors were the main buyers while commercial banks were the main sellers. The TES curve had a flattening bias with the front end underperforming the rest of the curve. The average yield change for the curve was about 58bp. Higher than expected inflation prints and expectations that the central bank could accelerate the speed at which it hikes rates might have prompted investors to position themselves for some curve flattening.