Breaking with the trend that started back in April of foreign investors consistently adding to their TES holdings, during September these holdings decreased by COP739bn or -0.7%. The participation of international investors in the TES market stood at 25.5% as a result of this decline, representing about COP100.2tn in nominal terms. BanRep and pension funds were the main buyers in September while banks and international investors were the main sellers. Yields along the TES curve were higher on average by c.49bp with some flattening bias, but TES were not alone in this type of yield movement: other local bond curves in the region saw yield increases too on the back of higher US Treasury yields, a stronger USD and worrisome global headlines. TES 22s underperformed the rest of the curve and inflation remains a concern, thus we believe BanRep might need to speed up its tightening cycle.