The Philippine government bond market expanded to a record P12.68 trillion in 2025 as secondary market activity surged and the country moved closer to inclusion in a major global bond index, the Bureau of the Treasury (BTr) said on Friday.
Annual trading volume grew nearly fourfold from a post-pandemic low of P2.98 trillion in 2022. The BTr attributed the growth to regular issuances of Treasury bills and bonds alongside a strategy focused on benchmark-building and security consolidation.
Secondary market trading became more balanced across different maturities in 2025. This marked a shift from previous years when activity was concentrated in longer-dated securities to a mix that now includes more short and medium-term instruments.
“The strength we are seeing in the secondary market is the clearest validation of our long-term strategy to deepen the government securities market,” Bureau of the Treasury National Treasurer Sharon Almanza said.
Almanza said that by building reliable benchmarks and modernizing infrastructure, the government is creating a more liquid and resilient market while ensuring efficient financing for economic growth.
Retail treasury bonds (TRBs) became an increasingly liquid segment of the secondary market, with the turnover ratio for these securities reaching 2.4 in 2025.
Foreign participation also increased, with non-resident holdings rising from 2 percent to nearly 5 percent during the year. This progress led to the Philippines being placed on the positive watchlist for inclusion in the JP Morgan Government Bond Index–Emerging Markets.
Market analysts expect that inclusion in the index would broaden the investor base, attract long-term global capital and help lower the government’s borrowing costs.
