Reversing the trend of the last six months, when foreign investors reduced Peru Soberanos positions, in April they increased those positions by PEN1.3bn for a total of PEN55bn. In percentage terms, their holdings increased slightly to 39.0%, compared to 38.7% in March. The renewed appetite for Soberanos was pretty much focused on Soberanos 2034s, with foreigners buying about PEN1.1bn of the PEN1.2bn tapped for this bond. There were also some other small position adjustments, like adding PEN469mn in Soberanos 2026s and small reductions in 2029s to 2040s. For the month, international investors were actually the main buyers, followed by pension funds, while banks were the main sellers. With political noise declining, Peruvian assets have performed relatively well, and now international investors’ attention is focused on the latest government announcements like the potential new issuance of local bonds and a potential liability management operation (seemingly local bond currency issuance taking priority over hard currency) expected towards September, and an economic package worth about PEN 5.8bn, which is already in the budget and might not imply extra financing needs.