The Philippines’ peso-denominated government securities are set to be included in J.P. Morgan Government Bond Index–Emerging Markets beginning 29 January 2027, a move welcomed by economic managers as a major step in deepening the country’s capital markets.

The Department of Finance (DoF), Bureau of the Treasury (BTr) and Bangko Sentral ng Pilipinas (BSP) say the inclusion of Philippine peso government bonds (RPGBs) reflects growing recognition from global investors of the country’s improving macroeconomic fundamentals and ongoing market reforms.

“We welcome the Philippines’ first-ever inclusion in the J.P. Morgan Government Bond Index–Emerging Markets for our peso-denominated government bonds. It reflects a strong vote of confidence in our solid fundamentals and fiscal discipline. This milestone will broaden our investor base, improve market liquidity, and help lower borrowing costs,” said Finance Secretary Frederick Go.

Major step

“This is a major step in deepening the Philippine capital markets, with significant benefits to the government, domestic and global investors, and local banks and businesses. As bonds gain more liquidity, this will help the BSP transmit monetary policy, benefiting borrowers and investors across the economy,” added BSP Governor Eli M. Remolona Jr. J.P. Morgan’s GBI-EM is among the most widely tracked benchmarks for emerging market local-currency bonds, used by global fund managers as a guide for portfolio allocation. Entry into the index typically triggers portfolio inflows from both passive and active funds that replicate or benchmark against it.

The inclusion follows a series of reforms aimed at strengthening the domestic bond market. These include initiatives to improve secondary market liquidity for government securities, develop the interest rate swap market, expand the repo (repurchase agreement) market, and streamline tax rules affecting foreign investors.

These measures are designed to align local market practices with international standards — key criteria for index inclusion — and have already contributed to rising foreign participation in domestic bonds.

New round of global bond issuances

The BTr in January also announced a new round of global bond issuances, marking the Philippines’ return to international capital markets through a triple-tranche offering.

The issuance includes 5.5-year, 10-year and 25-year notes aimed at helping finance the national budget amid a persistent fiscal deficit. The BTr said the transaction is being managed by J.P. Morgan, alongside BofA Securities, Deutsche Bank, HSBC, Morgan Stanley, Standard Chartered Bank and UBS as joint lead managers and bookrunners.