Amid rising country risk levels, Foreign investors sold 4.2 trillion pesos in Treasury Bonds (TES) in February, the highest data reported in a month. Thus, the balance of foreign investment in our public debt fell to 116.3 trillion pesos.
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He Director of Public Credit, José Roberto Acostamake sure that this behavior was explained as a result of an external situation where the risk appetite for emerging economies such as Colombia has slowed due to the abrupt increase in US Treasury rates above 4 percent.
However, some analysts also related the uncertainty and the greater risk to the messages that the Government has been giving.
Germán Cristancho, head of research and strategy at Davivienda Corredores, says that so far this year the risk premiums of Latin American countries have remained relatively stable or have even fallen; However, Colombia’s has noticed, which shows that there are idiosyncratic factors that are impacting the risk perception that investors have of the country. “To a large extent, it is possible that the presentation of the reforms and the broad agenda of legislative initiatives are increasing uncertainty,” he says.
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According to Juan David Ballén, director of Analysis and Strategy at Casa de Bolsa, the pension funds would have been the ones that bought the TES that they sold to foreigners. “If they wither the pension funds, there will be no one to buy them, and foreign sales would keep rates and the dollar going up,” he said.
