Phl shifts to global bond pricing in 2027

The Philippines will adopt international pricing conventions for peso-denominated government bonds starting Jan. 4, 2027, in a move expected to attract more investors, deepen market liquidity and lower borrowing costs.

The Bureau of the Treasury (BTr), Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), Philippine Dealing and Exchange Corp. (PDEx) and industry associations announced the shift, saying the necessary regulations and systems would be in place before the end of 2026.

The new convention will be incorporated into PDEx’s revised fixed-income market rules and trading practices. The BSP, SEC and IC will support financial institutions and the public throughout the transition.

Investors holding government bonds until maturity will not be affected, as the change will not alter the bonds’ contractual terms, tax obligations or scheduled interest and principal payments.

However, some investors may see differences in how settlement values are calculated under the new pricing convention.

The shift aligns the Philippine bond market with common international practices, making local government securities more familiar and accessible to foreign investors.

Finance Secretary Frederick D. Go said the reform forms part of the government’s broader effort to modernize the financial system and strengthen the country’s ability to compete for global capital.

BSP Governor Eli M. Remolona Jr. said a deeper, more liquid capital market would expand investment opportunities and provide businesses with additional funding sources beyond bank loans.

National Treasurer Sharon P. Almanza said wider participation in the government bond market could help reduce borrowing costs and allow the government to finance productive spending, including infrastructure and public services.

SEC Chairman Francis Lim said the move could encourage more trading and create a more active secondary market, benefiting both the government and businesses seeking to raise funds.

Insurance Commissioner Officer-in-Charge Ermar U. Benitez said the transition was expected to improve market liquidity and give insurance companies greater flexibility in managing their investment portfolios while meeting obligations to policyholders and beneficiaries.

The initiative comes ahead of the inclusion of Philippine peso-denominated government bonds in J.P. Morgan’s Government Bond Index–Emerging Markets series on Jan. 29, 2027.

Officials and industry groups said a more liquid bond market could eventually help lower private-sector borrowing costs, support business expansion and investment, and contribute to broader economic growth.