The Philippines is being considered for inclusion in J.P. Morgan’s emerging market government bond index after its peso-denominated government bonds (RPGBs) were placed on the bank’s positive watchlist, according to a report issued on Sept. 12.
The move followed recent market reforms in the Philippines, including streamlined tax treaty procedures, the revival of the repo market, and the launch of the peso interest rate swap market.
J.P. Morgan said Government Bond Index for Emerging Markets (GBI-EM) investors also gave positive feedback on the country’s RPGB market accessibility through Euroclear, a Brussels-based clearing house.
The Philippines was on an “Index Watch-Positive” by J.P. Morgan for potential inclusion in its widely tracked J.P. Morgan Government Bond Index – Emerging Markets (GBI-EM) series, a move that could broaden the country’s investor base, according to the Bureau of the Treasury (BTr).
The watch-positive status applies to the Philippines’ peso-denominated government bonds, known as RPGBs.
Placement on the “index watch-positive” signals that RPGBs could be added to the GBI-EM, a key benchmark for international investors. Such inclusion could further deepen the market and reduce the government’s reliance on foreign currency borrowings, the BTr said.
The decision reflects the Philippine government’s efforts to reform its capital markets to improve liquidity and accessibility for foreign investors. Key reforms, which have been viewed positively by global investors, include making RPGBs available via Euroclear; consolidating benchmark tenors to improve secondary market liquidity; and fine-tuning the Primary Dealership System for Government Securities.
Reforms also include streamlining the implementation of tax treaties; expanding the government securities repo market to include non-banks; and launching the PHP interest rate swap market.
These reforms have led to a substantial increase in non-resident participation over the past few years, the BTR said.
Foreign ownership of RPGBs has more than tripled, from 1.8 percent in 2021 to 6.03 percent as of August 2025, or equivalent to $12.78 billion.
The increase highlights growing investor confidence in the Philippine bond market, the BTr said.
If the Philippines is included in the GBI-EM Global Diversified index, it would have an estimated index weight of about 1 percent, although this is subject to change. Securities under consideration for inclusion are RPGBs issued since 2023, with tenors of up to 20 years.
J.P. Morgan’s assessment is expected to last six to nine months, with updates scheduled for the first quarter of 2026.
