The strong performance of Colombian assets last month apparently failed to convince foreign investors to add to net positions in TES, as their participation in this asset class inched lower to 24.6% of the total in May (from 25.2% in April). In nominal terms, the reduction was equivalent to COP 1.0trn, even as the TES curve was one of the outperformers in LatAm with an average yield compression of c.70bp and with the COP posting the best return (5.5% appreciation) among the global majors. On the other hand, local pension funds seem to have become more bullish and have been consistently adding positions since the beginning of the year. Local pension funds were the main buyers in May together with BanRep, while Commercial Banks shed some positions. A recent series of events seems to be negatively impacting President Petro’s political capital and his ability to push the government’s ambitious reform agenda forward, which appears to be welcome news for investors. The TES curve is also getting some support from inflation, as prices appear to have peaked and begun to decelerate. With this performance evidently extending into June, coupled with some anecdotal evidence, suggest foreigners could be adding to net TES positions again.