Philippines entry into J.P. Morgan bond index hailed

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MANILA, Philippines — The Philippines' first inclusion in the well-tracked J.P. Morgan's Government Bond Index-Emerging Markets reflects confidence in the country's economic management, the Deparment of Finance said.

"We welcome the Philippines' first-ever inclusion in the JPMorgan Government Bond Index. It reflects a strong vote of confidence in our solid fundamentals and fiscal discipline," Finance Secretary Frederick Go said in a statement Thursday, April 23.

"This milestone will broaden our investor base, improve market liquidity, and help lower borrowing costs," he added.

Reuters reported that J.P. Morgan will add the Philippines and Saudi Arabia to its local-currency emerging market debt index starting January 29 next year.

The report said the Philippine entry will cover peso-denominated government bonds.

The country's weight will be phased in gradually until it reaches 1.78%.

The American banking institution's GBI-EM, launched in June 2005, is the first comprehensive global emerging markets index for government bonds. Its performance is considered the benchmark for global investors looking at developing economies and markets.

Nine eligible Philippine government bonds with a combined value of about $49 billion are being considered for inclusion, the report said.

Reforms behind inclusion

The move follows an earlier step in September 2025, when Philippine peso-denominated government bonds were placed on J.P. Morgan's watch list for possible inclusion in the GBI-EM series.

At the time, the Bureau of the Treasury said the watch-list placement reflected reforms aimed at improving market liquidity and accessibility.

These included the consolidation of benchmark tenors, adjustments to the Primary Dealer System for Government Securities, streamlined tax implementation, the expansion of the government securities repo market to include non-banks, and the launch of the peso interest rate swap market.

The Treasury said those reforms helped raise nonresident participation in the peso government bond market.

It said foreign holdings rose to 1.83% in 2021 and 6.03% as of August 2025, equivalent to about $12.78 billion.

The Treasury had said watch-list placement signaled the potential inclusion of Philippine government bonds in the index, which is likely to widen the investor base.