Philippine peso-denominated government bonds (RPGBs) have been placed on J.P. Morgan’s “positive watchlist” for potential inclusion in its Government Bond Index for Emerging Markets (GBI-EM).
The GBI-EM, which tracks local-currency sovereign bonds from about 19 emerging markets, is widely followed by global fund managers. If included, the Philippines would account for roughly 1 percent of the GBI-EM Global Diversified Index.
Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the move could attract more foreign investment, improve liquidity, and lower borrowing costs.
“Getting on the positive watchlist is a testament to the work the government and financial market leaders have done, especially in the last few years to expand our capital markets,” he said.
J.P. Morgan highlighted improved market access via Euroclear and stronger secondary market liquidity after the consolidation of benchmark tenors.
Foreign holdings of RPGBs have more than doubled to 5.2 percent as of June 2025, up from 1.8 percent in 2021.
Finance Secretary Ralph Recto said index inclusion would support infrastructure, schools, and healthcare spending.
“This is a promising development for the Philippines as the potential inclusion of our government bonds into this global index means increased capital inflows and more funds for the government to better serve Filipinos,” he said.
J.P. Morgan expects to complete its Index Watch assessment within six to nine months, with updates due in the first quarter of 2026.
