Foreign investors, including Norway’s sovereign wealth fund, reduced their stake in Colombia’s bond market by selling 1.4 tln pesos of TES bonds last month amid the peso’s significant global rally. Contrarily, local pension funds bolstered their TES holdings by 1.2 tln pesos, lured by the high yields. With the region’s highest benchmark interest rate at 13.25%, Colombia stands apart as neighboring countries like Brazil, Peru, and Chile adopt eased monetary policies. The peso rallied by 24% this year, buoyed by rising oil prices and welfare reforms under President Petro, and the debt has yielded around 20%.