Manila: The Philippine government on Thursday welcomed J.P. Morgan's decision to include peso-denominated government bonds (RPGBs) in its Government Bond Index-Emerging Markets (GBI-EM) starting Jan. 29, 2027.

According to Philippines News Agency, the Department of Finance (DOF), Bureau of the Treasury (BTr), and Bangko Sentral ng Pilipinas (BSP) issued a joint statement emphasizing that the inclusion reflects strong global recognition of the country's macroeconomic fundamentals and financial reforms. The agencies highlighted efforts to improve bond liquidity, develop interest rate swap and repo markets, and simplify tax treaty rules as key factors contributing to this recognition.

Finance Secretary Frederick Go remarked that the first-ever inclusion in the index is a 'strong vote of confidence' in the country's fundamental economic strengths and fiscal discipline. He stated, "This milestone will broaden our investor base, improve market liquidity, and help lower borrowing costs."

BSP Governor Eli Remolona Jr. echoed these sentiments, noting that the move will deepen capital markets and bring benefits to the government, businesses, and investors. He added, "As bonds gain more liquidity, this will help the BSP transmit monetary policy, benefiting borrowers and investors across the economy."

The BTr and BSP further noted that the inclusion is already attracting more foreign investors to government securities. The agencies committed to continuing their collaboration with regulators and market participants to align local practices with global standards.