The Philippines is set to gain more attention from global investors after J.P. Morgan announced it will include the country’s peso-denominated government bonds in its widely tracked emerging markets index starting January 29, 2027, the Department of Finance (DOF) said in a news release dated April 23.
This marks the first time Philippine bonds will be part of the J.P. Morgan Government Bond Index – Emerging Markets (GBI-EM), a benchmark used by major international fund managers when deciding where to invest.
Economic managers say the move reflects growing confidence in the country’s financial stability and recent reforms aimed at improving the bond market. These include making it easier to buy and sell government bonds, strengthening related financial markets, and simplifying tax rules for investors.
With the inclusion, more foreign investors are expected to invest in Philippine government bonds, which could help the government borrow at lower costs and make the market more active.
DOF Secretary Frederick D. Go said, “We welcome the Philippines’ first-ever inclusion in the J.P. Morgan Government Bond Index – Emerging Markets for our peso denominated government bonds. It reflects a strong vote of confidence in our solid fundamentals and fiscal discipline. This milestone will broaden our investor base, improve market liquidity, and help lower borrowing costs.”
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said, “This is a major step in deepening the Philippine capital markets, with significant benefits to the government, to domestic and global investors, and to local banks and businesses. As bonds gain more liquidity, this will help the BSP transmit monetary policy, benefiting borrowers and investors across the economy.”
Authorities said they will continue working with financial institutions and regulators to align local market practices with global standards, which could further boost investor confidence.
The J.P. Morgan GBI-EM is one of the most closely watched indexes for emerging market bonds. Countries included in the index typically see increased investor interest, as many global funds use it as a guide for their investments.