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IBR Swaps Curve Bear Flattens As Markets Digest Inflation Data

COLOMBIA
  • Colombian local swaps curve shifts higher following the inflation data over the weekend where headline CPI surged to five-year highs of 6.94% Y/y.
  • Curve is seen bear flatter, rising between 33-9 basis points.
  • Only data for the rest of the week is the consumer confidence index before more notable December Trade Balance, Retail sales and Industrial production are released next week.
  • For reference the next BanRep meeting/decision is on March 31.
  • As a reminder, Congressional and Presidential primaries are scheduled in March, followed by the first round of the presidential election on May 29. In the likely scenario that no candidate receives a majority of the vote, the second-round runoff will then take place in June.
  • Colombia IBR Swaps:
    • 1-yr +33 bps at 6.74%
    • 2-yr +22 bps at 7.05%
    • 5-yr +14 bps at 7.22%
    • 10-yr +9 bps at 7.35%

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