COP – COP outperformed today and currently sits at 3942. Flow wise, our traders saw small COP inflows from HF and levels that they continue to watch are 3900-3975. Cash inflows helped the short end of the curve trade higher, which drove the entire curve higher early in the session. Our trader notes that it is interesting that the short COP trade seems to be related to the Banrep cutting cycle having to catch up to regional peers. On the macro front, Davivienda Manufacturing PMI deteriorated in February. The index stood at 51.2 in February, down from the 55.1 level observed in January. The deterioration was driven mainly by a drop in new orders, which fell from 57.7 to 51.0. Despite the decline, the index remains above 50 for a third consecutive month, signaling ongoing recovery, though we continue to expect some sluggishness in 2024. Looking ahead, Colombia will report CPI this week on Thursday, where consensus expects 1.00% MoM versus 0.92% prior.
