During January, foreign investors were neither active buyers nor sellers of Colombian TES. Foreign bond holdings stood at 24.4% of the total (vs. 24.8% in December) and amounted to COP98.5tn, similar to the previous two months. The TES curve had a slight steepening bias but yields increased by about 75bp on average, underperforming regional peers. This might have reduced international investors’ appetite for Colombian TES and kept them from adding positions. During the month, pension funds and commercial banks were the main buyers and public trust funds were sellers, although in a small amount. January’s inflation print came in higher than expected and the risks are skewed to the upside, prompting BanRep to continue its hiking cycle. But we also believe that the upcoming elections could be another source of volatility and added risk.