During December, international investors’ holdings of Colombian TES increased marginally by COP33bn to a total of about COP98.5tn, slightly below the year-high level of COP101tn posted in August. In 2021, foreigners’ TES holdings increased by COP11.3tn and they remained the second-largest holders of TES after pension funds. During the month, banks and BanRep were the main buyers, while other public entities were the main sellers. The TES curve flattened, with short-dated bond yields increasing by about 40-45bp while long-dated bonds yields declined by about 30bp – a curve move that is not surprising given the higher than expected inflation prints and investor expectations that the key rate hiking cycle will continue, possibly at a faster pace than in previous months.