PH gov’t bonds to enter J.P. Morgan’s Gov’t Bond Index

Philippine peso-denominated government bonds (RPGBs) will be included in J.P. Morgan’s Government Bond Index – Emerging Markets (GBI-EM) series on January 29, 2027.

This was announced by the Department of Finance (DOF), the Bureau of the Treasury (BTr), and the Bangko Sentral ng Pilipinas (BSP) in a joint statement on Thursday.

The J.P. Morgan’s GBI-EM is one of the most widely tracked benchmarks of emerging market bonds.

Inclusion may increase interest in a country’s bonds as the index is used by fund managers and other investors as a guide or benchmark for their investments.

The DOF, Treasury, and the BSP said the “milestone” is a “strong acknowledgement” from the international financial community of the positive developments in the Philippine financial and capital markets, driven by the active pursuit of meaningful reforms alongside robust macroeconomic development.

“These include wide-ranging initiatives encompassing improvements in the liquidity of government bonds, development of the interest rate swap market, strengthening of the repo market, and clarification and simplified application of tax treaty rules,” they said.

“These achievements have already drawn more foreign investors to Philippine government bonds. Today’s milestone will further broaden the investor base and support liquidity in the Philippine government securities market,” the government agencies added.

Finance Secretary Frederick Go said the RPGB’s inclusion in the J.P. Morgan’s GBI-EM reflects a strong vote of confidence in the country’s solid fundamentals and fiscal discipline.

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

BSP Governor Eli Remolona Jr. said the development is a major step in deepening the Philippine capital markets, “with significant benefits to the government, to domestic and global investors, and to local banks and businesses.”

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

The DOF, BTr, and the BSP said they will continue to work with other regulators, financial institutions, and fund managers to strengthen alignment of local trading and pricing conventions with global practices. — JMA, GMA News