During October, foreign holdings of Colombian TES declined marginally to 25.1% from 25.5% in September. In nominal terms, this represented a decrease of COP268.6bn. Total holdings stood at COP100tn. BanRep and commercial banks were the main buyers during the month, while Minfin was the main seller. In line with recent key rate hikes (BanRep increased the overnight lending rate by a total of 75bp in the last two meetings), the TES curve flattened with the front end underperforming the rest of the curve. Yields along the curve increased by an average of 43bp, while COLTES 22s and 24s yields were 93bp and 69bp higher, respectively. While the latest inflation print came in below expectations, the downside surprise can be partially explained by one-off items like the non-VAT day. The general inflation trend remains to the upside and BanRep is likely to continue its tightening cycle. Therefore, a 50bp rate hike at the meeting in December is possible.