JP Morgan index inclusion lifts Phl bonds outlook

The Philippine government has welcomed the inclusion of peso-denominated government bonds in a major global benchmark, a move officials say underscores growing investor confidence in the country’s economic fundamentals.

In a joint statement, the Department of Finance (DOF), Bureau of the Treasury (BTr), and Bangko Sentral ng Pilipinas confirmed that J.P. Morgan will add Philippine government bonds to its Government Bond Index–Emerging Markets (GBI-EM) beginning January 29, 2027.

Officials said the inclusion reflects sustained reforms in the local bond market, including efforts to improve liquidity, develop interest rate swap and repo markets, and streamline tax treaty processes.

Finance Secretary Frederick Go described the development as a strong endorsement of the country’s fiscal position.

“This milestone will broaden our investor base, improve market liquidity, and help lower borrowing costs,” Go said.

BSP Governor Eli Remolona Jr. said the move is expected to deepen capital markets and strengthen monetary policy transmission.

“As bonds gain more liquidity, this will help the BSP transmit monetary policy, benefiting borrowers and investors across the economy,” he said.

The BTr and BSP noted that the decision is already drawing increased foreign participation in government securities, with expectations of broader market access ahead.

The agencies added that they will continue coordinating with regulators and market players to further align local financial practices with global standards.