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Finance Ministry Says Won’t Issue Any More Peso Bonds in 2022

COLOMBIA
  • The 33.75 trillion pesos raised so far are enough to meet cash needs, according to a statement from the Finance Ministry.
  • Decision not to issue more local peso bonds, known as TES, will allow Colombia to consolidate less expensive debt and is consistent with objective of complying with fiscal rule.
  • The 33.75 trillion pesos of local bond sales represents 90% of the 37.5 trillion pesos that was expected for the year, according to the Finance Ministry.
  • BBVA strategists noted that “this measure could provide some relief for battered local bonds which reached yields north of 14% last week, but more will be needed including further fiscal commitment and less political noise to halt the downside pressure on the COP”.
  • Today’s data is scheduled at 1700BST/1200ET: August Economic Activity NSA YoY, est. 7.4%, prior 6.4%

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