In February, foreign investors' participation in the Peru Soberanos stood at 40.2% versus 40.6% in January. In nominal terms, international investor holdings actually saw a small increase of PEN12mn. The lower participation in percentage terms is explained by the larger stock of bonds outstanding: during the month, the MinFin issued c.PEN 1.8bn. Foreign investors also hopped along the Soberanos curve, adding positions in Soberanos 29s, 32s, and 37s, which saw primary market activity, while reducing positions in other bonds like Soberanos 28s, 31s, and 40s. Banks were the main buyers and pension funds were sellers in small size, although their positions remain at a subdued historical level. During the month, the Soberanos curve had a bull steepening move and outperformed peers. At the same time, that the PEN was second best performer in LatAm FX, but the risk-off and stronger USD seen during the month might have kept foreigners on the side lines. The social unrest seen earlier in the year seems to have had a negative impact on economic activity and inflation, but since then the protests have diminished and the central bank and government have had a better chance to focus on economic and monetary policy. The status quo scenario is gaining support, while PEN stability could also provide support for the Soberanos curve.