While in notional terms foreigners’ holdings of TES remained fairly flat in March, in percentage terms of the total, they declined to 25.2% from 25.6% in February. International investors’ reluctance to add positions was evident even as Colombian local bonds and the COP performed reasonably well. Indeed, the Coltes curve easily outperformed LatAm peers, registering an average compression of c.145bp, while the COP appreciated by c.5%. The main bond buyers in the month of March were local Pension funds and insurance companies, a trend that has been improving since the end of last year, while BanRep was the main seller. Colombia’s inflation has reached 24Y-highs but is likely close to peaking, while economic activity is decelerating, although still showing resilience, presenting a conundrum for BanRep. The bank has been a reluctant but ultimately steady hiker, eventually closing the gap with market expectations. Inflation momentum remains high, and the main improvements for Colombian assets and the TES have come from the lower risk premia on the back of some push back and watering down of the reform agenda and less political noise. The trends so far in April do not appear to have changed much, as Colombian local bonds and the COP are performing but with limited international investor activity.