The Philippines is now in the final review phase for potential inclusion in J.P. Morgan’s Government Bond Index for Emerging Markets (GBI-EM), a move seen by the Bangko Sentral ng Pilipinas (BSP) as a major step toward attracting more foreign investment and deepening local capital markets.
J.P. Morgan placed peso-denominated government bonds (RPGBs) on its “positive watchlist” on September 12, 2025, signaling that the country could soon join the world’s most-followed index for local-currency emerging market debt. If approved, the Philippines would carry a weight of approximately 1 percent in the GBI-EM Global Diversified Index, alongside 19 other emerging economies.
BSP Governor Eli M. Remolona, Jr. called the development “a testament to the work the government and financial market leaders have done,” citing reforms to expand and modernize the domestic bond market.
Inclusion in the GBI-EM is expected to attract more global fund managers to Philippine bonds, improving market liquidity and lowering borrowing costs for both the government and the private sector. It also underscores increased accessibility of RPGBs via Euroclear and recent liquidity-enhancing moves by the Bureau of the Treasury.
J.P. Morgan attributed the Philippines’ consideration to “proactive market reforms” such as the revival of the repo market, streamlined tax treaty procedures, and the introduction of the peso interest rate swap market — efforts spearheaded by the BSP and industry groups.
Foreign ownership of RPGBs has risen from 1.8 percent in 2021 to 5.2 percent as of June 2025, according to J.P. Morgan. Still, the bank noted that investors continue to call for further improvements in tax procedures and secondary market liquidity.
A final decision on the country’s inclusion is expected by the first quarter of 2026, following a six- to nine-month assessment.
