BOGOTA, July 22 (Reuters) - Investment bank J.P. Morgan on Tuesday said it increased the weighting of Colombia's peso-denominated debt in one of its closely followed emerging market bond indexes.
In a note circulated to investors, J.P. Morgan said it would raise to 8.8 percent from 8 percent the weighting of six Treasury bonds, known as TES, in its GBI-EM Global Diversified index. The instruments affected mature in 2016, 2018, 2019, 2022, 2024 and 2028, the note said.
J.P. Morgan first announced the increased weighting back in March, bringing a flood of additional investment in the nation's securities since investment fund managers are often judged against the benchmarks.
The investment bank in March also increased the weighting in its GBI-EM Global index to 5.6 percent from 1.8 percent.
Following the index adjustment, Colombia's peso strengthened 0.78 percent to 1,842.3 against the dollar while the yield on the 2024 TES bond slipped to 6.441 percent from 6.534 percent on Monday.
Colombia's participation in J.P. Morgan's GBI-EM Global Diversified index was originally 3.2 percent.
J.P. Morgan did not give a reason in its investment note why it was raising the weighting. (Reporting by Nelson Bocanegra; Writing by Helen Murphy; Editing by Diane Craft)