Government bond trading hits record P12.68 trillion in 2025, Treasury says

The Philippines’ government bond market posted record trading volumes in 2025, signaling stronger liquidity and investor confidence, according to the Bureau of the Treasury (BTr).

In a report released Friday, 6 February, the BTr said secondary market trading of government securities surged to P12.68 trillion by end-2025, nearly four times higher than 2015 levels and sharply rebounding from the pandemic-era low of P2.98 trillion recorded in 2022.

The improvement reflects sustained efforts to deepen the domestic capital market through regular issuance of Treasury bills and bonds, as well as reforms aimed at improving price transparency and yield curve development.

Market activity also became more balanced across short-, medium- and long-term securities, indicating broader investor participation and improved market resilience. Turnover ratios for key benchmark securities likewise strengthened, particularly for five-year, seven-year and 10-year bonds.

National Treasurer Sharon P. Almanza said the results reflect the government’s long-term capital market strategy.

“The strength we are seeing in the secondary market is the clearest validation of our long-term strategy to deepen the government securities market,” she said.

“By building reliable benchmarks, modernizing market infrastructure, and working closely with our primary dealers, we are creating a market that is more liquid, transparent, and resilient, while ensuring that government financing remains efficient and that the capital market continues to support sustainable economic growth,” Almanza added.

Retail Treasury Bonds (RTBs) also gained traction, with turnover ratios reaching 2.4 in 2025, indicating stronger trading activity and wider investor participation among retail investors.

Foreign investor participation likewise increased, rising from about 2 percent in 2023 to nearly 5 percent in 2025, reflecting improved accessibility of Philippine government securities. The country is also under watch for possible inclusion in the JP Morgan Government Bond Index–Emerging Markets, a move expected to further attract global investors and potentially reduce borrowing costs.

The Treasury said continued strengthening of the secondary market supports stable financing conditions for both the government and the private sector, helping sustain long-term economic growth.