BSP: PH considered for inclusion in Global Bond Index

The Philippines is officially being considered for inclusion in J.P. Morgan’s (JPM) emerging market government bond index, the most-followed index of its kind. Inclusion would be expected to attract more foreign investments, increasing liquidity and lowering borrowing costs for the government and eventually the private sector.

​In a report issued on 12 September 2025, J.P. Morgan placed Philippine peso-denominated government bonds (RPGB) on its positive watchlist. J.P. Morgan said this marks the final review phase for potential inclusion in its Government Bond Index for Emerging Markets (GBI-EM) series.

The GBI-EM is the pioneer index for local-currency emerging market sovereign bonds and is the most-followed by global fund managers and investors as a guide for where to invest. It covers about 19 countries. J.P. Morgan said the Philippines would have a weight of about 1 percent of the GBI-EM Global Diversified Index, if included. Saudi Arabia sukuk bonds were also put on the positive watchlist alongside the Philippines.

While the Philippines has been able to raise funds from foreign investors through its dollar-denominated bonds since the early 2000s, inclusion in the GBI-EM series is expected to help the government draw more foreign investors to its larger peso-denominated bond market.

According to Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr., “Getting on the positive watchlist is a testament to the work the government and financial market leaders has done especially in the last few years to expand our capital markets, particularly our local bond market. This news  serves as further impetus to execute more changes and reforms.”

J.P. Morgan said its move followed “proactive market reforms” in recent years including streamlining tax treaty procedures, reviving the repo market, and launching the Philippine Peso interest rate swap market. The last two were led by the Bankers Association of the Philippines and the BSP.

J.P. Morgan also noted positive feedback from GBI-EM investors, particularly on the accessibility of the RPGB market via Brussels-based clearing house Euroclear, as well as improvements in secondary market liquidity through the consolidation of benchmark tenors. The latter refers to the Bureau of the Treasury's moves to reissue select bonds rather than issue new bonds, thereby creating more liquid “benchmark" bonds that investors are more confident to invest in. Due to reforms, foreign ownership of RPGBs has doubled from 1.8 percent in 2021 to 5.2 percent as of June 2025, J.P. Morgan said.

However, J.P. Morgan said investors continue to seek further enhancements in secondary market liquidity and easing of tax hurdles. The BSP supports efforts of the national government and industry stakeholders to further develop the domestic capital market.

J.P. Morgan said it expects to carry out its Index Watch assessment within six to nine months and to provide updates during the first quarter of 2026.​