La DOTCE Vita: Are we ready for bond index inclusion? 

If the recent pronouncements of Philippine National Treasurer Sharon Almanza are any indication of something exciting about to happen, we can expect investors to be busy preparing for it.

A few days ago, Almazan spilled the latest on the much-anticipated possibility of the Philippines’ inclusion in the JP Morgan Global Bond Index-Emerging Market (GBI-EM). We’ve written about this development in the past, covering key benefits that could come our way should we finally gain entry to the GBI in what has now become a series of “WWJH (When Will JP Morgan index inclusion Happen)”.

Last year, we received an update from then Department of Finance Secretary Ralph Recto with the latest remarks from Treasurer Almanza reiterating that “the Philippines has made progress in meeting key market requirements, particularly in improving liquidity and aligning market practices with global standards”.

The Treasurer believes a decision could be in the works in the near term with up to USD 3 billion worth of foreign funds potentially entering the market should we bag a 1% inclusion.

As mentioned previously, a flow of that magnitude and a flow of the “sticky” nature could be both supportive of the local bond market and the local currency even ahead of the actual inclusion into the GBI-EM.

If you are a bond market investor looking to pick up relative value, this development is certainly worth keeping in mind.

Exactly when this bond index inclusion will happen is anybody’s guess, but if it does happen this year, it could be the first positive development to start 2026.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)

NICHOLAS MAPA is Metrobank’s Chief Economist, Market Strategist, and Head of the Research and Market Strategy Department in the Financial Markets Sector. He graduated from the University of Asia and the Pacific (UA&P) with an undergraduate degree in Humanities and a Master of Science (MSc) in Industrial Economics. He also completed an MA in Economics from Vanderbilt University and an MBA from the Kelley School of Business at Indiana University. He travels regularly with his family, enamored by culture and history. An avid learner, he also reads extensively.