Colombia's public debt yields top 15% as Comptroller flags fiscal risks

Five Colombian government bonds broke the 15% yield barrier, the highest borrowing cost the Petro administration has faced since the Covid crisis. The sharp rise, driven by a loss of investor confidence, followed a failed 900‑billion‑peso auction that attracted only 850 billion pesos, a situation not seen in recent history.

The Comptroller General issued its first follow‑up report, confirming persistent fiscal and financial risks. It warned that the appreciation of the Swiss franc against the dollar could increase dollar‑denominated costs and that recent Treasury (TES) placements on May 13 were priced 68 basis points higher than the late‑April auction. The report highlighted the recent amendment to the TES over‑allocation mechanism, which now allows up to 100% excess allocation and could undermine debt‑reduction goals.

Director of Public Credit Javier Cuéllar admitted miscalculations, citing an unexpectedly aggressive monetary policy and a market over‑reaction to the recent minimum‑wage hike. The Comptroller also flagged a concentration of debt maturities in 2026, 2029 and 2030, which could pressure the government's ability to meet its 2026 fiscal‑deficit target of 5.1% of GDP.