Colombian government bonds, known as TES, yield more than 13% in pesos, among the highest local-currency government yields in Latin America. That headline number attracts global investors, but it comes with fiscal, currency and rate risks that are easy to underestimate. This guide covers what TES are, what they pay today, how prices react to rates, a calculator, how foreigners and locals can buy them, and a critical look at whether today’s yields are an opportunity or a warning.
TES are peso-denominated bonds issued by Colombia’s Finance Ministry. You lend the government money, receive annual coupons and get your principal back at maturity. Yields sit above 12% across the curve because markets are charging Colombia for a large fiscal deficit. Default risk is low; the real risks are price swings when rates move and, for dollar-based investors, peso depreciation.
What are TES?
TES (Títulos de Tesorería) are sovereign bonds issued by Colombia’s Ministry of Finance and administered by Banco de la República, the central bank. They are the government’s main funding tool and the benchmark for every other interest rate in the country. They trade daily on the secondary market, so prices move continuously.
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Open TradingView → · Affiliate linkFixed-rate vs. UVR TES
| Type | How it pays | Performs best when | Examples |
|---|---|---|---|
| Fixed-rate (COP) | Fixed peso coupon | Inflation and rates fall | TES 2033, 2036, 2050 |
| UVR (inflation-linked) | Real rate + inflation via the UVR unit | Inflation surprises higher | UVR 2035 |
| Short-term (TCO) | Discount, under 1 year | Liquidity, low price risk | 1-year TCO |
The golden rule: yields up, prices down
If new bonds pay 13%, nobody will pay full price for your 12% bond; its price falls until its yield matches the market. Hold to maturity and you collect every coupon and full principal. The price loss or gain only becomes real if you sell early.
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Try Koyfin → · Affiliate linkWhat TES pay today, and why so much
- Fiscal deficit: Anif estimates the central government deficit at 7.6% of GDP in 2026.
- 2027 budget of COP 634.9 trillion: larger than markets hoped.
- Heavy issuance: Colombia sold a record $5.2 billion of global bonds on Oct. 26, 2026, at 7%–8.125% coupons, pricier than January’s 5.93% average.
- Country risk: Colombia’s 5-year CDS stands at 160 basis points, above Brazil, Mexico, Peru and Chile.
- U.S. yields near 5%: global investors demand more from emerging markets.
10-year TES yield history
The 2022 spike, near 15.5%, came with high inflation, aggressive rate hikes and fiscal uncertainty. Yields eased in 2023 as inflation fell, then climbed back above 13% in 2026 as fiscal concerns returned.
TES calculator
🧮 TES calculator: how much would you earn?
Simplified, before taxes and fees. Assumes annual coupons held to maturity.
Example: COP 1 million in a 10-year TES
| Item | 10-year TES at 13.18% |
|---|---|
| Investment | COP 1,000,000 |
| Annual coupon | COP 131,800 |
| Interest over 10 years | COP 1,318,000 |
| Total at maturity | COP 2,318,000 |
| Value if yields rise 1 point (next day) | ≈ COP 948,000 (−5.2%) |
The dollar investor’s math
For a foreign investor, the return is the peso yield minus any peso depreciation. A rough rule: if TES pay 13% and the peso loses 5% against the dollar over the year, the dollar return falls to roughly 7.4%. If the peso loses more than the yield, the dollar return turns negative. With USD/COP near 3,147 and a government that may sell dollars from its global bond issue, the currency path is as important as the bond itself.
TES vs. CDTs vs. mutual funds
| TES | CDT (bank CD) | Collective investment fund | |
|---|---|---|---|
| Issuer | National government | A bank | Diversified portfolio |
| Protection | Sovereign backing | Fogafín deposit insurance up to COP 50 million per person per bank | None |
| Liquidity | Tradable, with price risk | Usually locked until maturity | Daily or with lock-up |
| If rates rise | Price falls | No effect if held | Unit value may fall |
How to buy TES
- Colombian residents: open an account with a Superintendencia Financiera-supervised brokerage (comisionista de bolsa); many offer mobile apps with fixed-income desks. Check minimums and fees.
- Funds and ETFs: local fixed-income funds and government-debt ETFs offer TES exposure with small amounts.
- Foreign investors: typically access TES through a local custodian and registered foreign-investment channels, or via global emerging-market local-currency bond funds that hold TES.
Taxes
TES returns are financial income. In Colombia, brokers apply withholding tax on coupons and gains, and residents must report them in their annual income tax return; holdings count toward net worth on Dec. 31. Foreign investors face separate withholding rules that depend on their registration channel and any tax treaty. Ask your broker or custodian for the applicable rate.
Key risks
- Rate risk: higher yields mean lower prices.
- Currency risk: the biggest variable for dollar investors.
- Fiscal and rating risk: a downgrade usually lifts yields.
- Liquidity: some maturities trade thinly.
- Inflation: erodes real returns on fixed-rate TES.
Critical take: opportunity or warning?
A 13% yield is not a free lunch; it is the price of risk. The striking detail is that Colombia’s credit risk now exceeds Brazil’s, which points to domestic fiscal factors rather than global conditions. Buyers at these levels are implicitly betting that public finances stabilize. If that happens, they lock in high income plus price gains as yields fall. If deficits keep widening or the rating is cut, 2022 shows yields can overshoot well above current levels.
For dollar-based investors the bet is double: on Colombian rates and on the peso. Those two risks tend to move together in a crisis, which is when foreign selling accelerates.
Frequently asked questions
What are TES bonds?
Peso-denominated sovereign bonds issued by Colombia’s Finance Ministry. They pay annual coupons and return principal at maturity.
What do TES yield today?
As of Oct. 16, 2026: 12.13% (1-year), 12.93% (5-year) and 13.18% (10-year), per Banco de la República data.
Are TES safe?
Default risk is low because they are backed by the Colombian state, but prices move with rates and, for foreigners, returns depend on the peso.
Can foreigners buy TES?
Yes, usually through a local custodian and registered foreign-investment channels, or through emerging-market bond funds.
What is a UVR TES?
An inflation-linked TES paying a real rate plus inflation measured by the UVR unit.
Why are Colombian yields so high?
A large fiscal deficit, heavy debt issuance, higher country risk than regional peers and U.S. yields near 5%.
Keep learning: Learn to Invest · Colombian peso today · Colombia stock market today · Leer en español
🧾 Living in Colombia? Check whether you must file a 2027 return in our Colombia tax guide for expats.
Official and market sources: Ministry of Finance – Public Credit, Banco de la República (TES), Colombian Stock Exchange, La República, El Colombiano (TES), El Colombiano (global bonds). Updated Oct. 27, 2026.
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