In June, international investors seemed reluctant to add Soberanos positions, as their total holdings stood at 44.6%, just a bit above the 44.5% registered in May. In nominal terms, foreigners added PEN115mn. Although foreigners were not actively adding holdings, they were actively switching positions along the curve; here, they added the most in Soberanos 31s, 24s and 23s, while cutting positions in Sobernos 34s and 32s. The curve performance seems to reflect some of this repositioning, as bond yields at the front end of the curve were flat and long bond yields were up by c.48bp on average. The shortening of duration comes in the wake of political uncertainties surrounding the presidential elections, and while Pedro Castillo seems the likely winner, there are still many questions about his economic team and policies. We hope some of these are soon answered.