Philippines Placed on Index Watch-Positive for Inclusion in the J.P. Morgan GBI-EM Series

Philippine Peso-denominated government bonds (RPGBs) are placed on Index Watch-Positive for potential inclusion in the widely tracked J.P. Morgan Government Bond Index – Emerging Markets (GBI EM) series, marking a significant step forward for the country’s capital markets.

​This milestone reflects the ROP’s efforts to engage international investors and push market reforms with the goal of improving market liquidity and accessibility of the onshore government bond market for foreign investors. Key enhancements such as the availability of RPGBs via Euroclear, improvements in secondary market liquidity through the consolidation of benchmark tenors, the fine-tuning of the Primary Dealership System for Government Securities, the streamlining of Tax Treaty Implementation, the expansion of the GS repo market to include non-banks, and the launch of the PHP interest rate swap market, have been viewed positively by global investors.

These reforms have led to meaningful increases in non-resident participation over the past few years. Foreign ownership of RPGBs has more than tripled, increasing from 1.8% in 2021 to 6.03% as of August 2025, equivalent to USD 12.78 billion, underscoring investor confidence and the growing attractiveness of the Philippine bond market.

Investors also look forward to the ongoing efforts to enhance secondary market liquidity and ease tax hurdles, which will further strengthen the Philippines’ investment climate.

Placement on Index Watch-Positive signals the potential for RPGBs to be added to the GBI-EM, a widely followed benchmark among international investors. Such inclusion could further broaden the Philippines’ investor base, enhance market depth, and thereby allow the government to rely less on foreign currency borrowings to sustain the country’s high growth trajectory.

If included in the GBI-EM Global Diversified (GBI-EM GD), the Philippines would carry an estimated index weight of approximately 1%, subject to change based on future capital market activity and benchmark adjustments. Securities in scope include RPGBs issued since 2023, with tenors of up to 20 years.
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The Index Watch assessment is expected to last 6 to 9 months, with further updates and any applicable index rebalancing estimates to be provided in Q1 2026.