Colombia TES yields rise 40 bps in August

Yields on Colombia's peso-denominated TES sovereign bonds increased by 40 basis points in August 2026 compared to the end of July. In its latest fiscal monitoring report published on September 23, 2026, the Autonomous Committee for the Fiscal Rule (Carf) warned about the rising cost of national debt financing.

The bond depreciation occurred alongside a decline in the National Treasury cash balance, which serves as a liquidity cushion for short-term government needs. The cash balance closed August at COP 15.1 trillion, down from COP 26.7 trillion in July and well below the historical August average of COP 26.4 trillion recorded since 2014.

Through July 2026, cumulative gross tax revenue reached COP 197.5 trillion, a 10.4% increase compared to the same period in 2025, while net revenue rose 10.2% to COP 182.9 trillion. Carf noted that this growth was driven by emergency revenues following the earthquake on August 10. Without those emergency funds, nominal growth for gross and net revenue would have been 4.8% and 4.4%, translating into real terms drops of 1.2% and 1.6%, respectively. In its August financial plan update, Carf trimmed its full-year 2026 net tax revenue projection from COP 290.4 trillion to COP 288.9 trillion, citing lower nominal economic growth and peso appreciation.

External debt fell to 21% of total gross debt in July 2026, its lowest share since records began in 2001, and stood at 12.6% of GDP, driven primarily by the appreciation of the Colombian peso. Meanwhile, budget execution reached 55.9% of total appropriations in August, 2.2 percentage points higher than in August 2025. Investment commitments reached 72.1%, although investment remained the segment with the lowest execution of actual payments.