Philippine gov't securities resilient amid corruption, says National Treasury

Investor demand for Philippine government securities (GS) remains firm despite the ongoing scrutiny over corruption and ghost flood control projects, as seen in the tight spread, according to National Treasurer Sharon Almanza.

Speaking with reporters, Almanza said investor appetite remains strong, as the strong bids are reflected in the continued preference for government papers, while the local equities market has shown a slump.

“The GS market is actually rallying while the stock market is down. The GS market is very robust, so we haven’t seen (the impact on government securities). Even our spread is still very tight,” she said in Taguig City.

“The spread of our domestic curve vis-à-vis US Treasuries and even our ROP (Republic of the Philippines) is still very tight. Our CDS (credit default swap) is still at its tightest, so we haven’t seen any major widening of our spread,” she added.

Data from the Department of Finance (DOF) show that the government raised P2.08 trillion as of Monday, November 24, close to the P2.11-trillion issuance program for the year.

The Philippine Stock Exchange index (PSEi), meanwhile, closed Friday, November 28, at 6,022.24, reflecting a 7.758% decline from 6,528.79 on December 27, 2024, the last trading day of the year. It also hit a five-year low of 5,629.07 on November 10, 2025.

This comes as President Ferdinand “Bongbong” Marcos Jr. in August disclosed that 20% of the total P545-billion budget for flood control projects went to only 15 contractors, which he described as a “disturbing assessment.”

Both chambers of Congress look into alleged irregularities in public works spending, along with a separate probe by the Independent Commission for Infrastructure (ICI), tasked to conduct an in-depth investigation into the alleged irregularities and misuse of funds in flood control, and other infrastructure projects.

“I think the investigation has been progressing, so we’re really hoping that that will address some of the concerns of people, of our investors, that the system is working,” Almanza said. –NB, GMA Integrated News