Government bond trades hit record P12.7 trillion

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February 10, 2026 | 12:00am

MANILA, Philippines — Trading in Philippine government securities surged to a record high in 2025, underscoring a marked improvement in secondary market liquidity as years of benchmark-building and regular issuances started to pay off.

Data from the Bureau of the Treasury showed secondary market trading volume climbed to P12.68 trillion by end-2025, nearly four times higher than the P2.98 trillion recorded in 2022, when activity slumped in the aftermath of the pandemic.

Market participants pointed to steadier Treasury bill and bond issuance, alongside consolidation of issues into key benchmarks, as critical drivers of the rebound.

National Treasurer Sharon Almanza said the gains reflect years of groundwork to modernize the market.

“The strength we are seeing in the secondary market is the clearest validation of our long-term strategy to deepen the government securities market,” she said.

“By building reliable benchmarks, modernizing market infrastructure and working closely with our primary dealers, we are creating a market that is more liquid, transparent and resilient, while ensuring that government financing remains efficient and that the capital market continues to support sustainable economic growth.”

The strategy has translated into stronger turnover for benchmark securities. In 2025, the turnover ratios for the five-year, seven-year and 10-year benchmarks rose to 2.5, 1.6 and 3.1, respectively, from 0.3, 0.7 and 1.6 in 2023.

Overall market depth also improved, with the government securities turnover ratio reaching 1.05, supported by higher daily trading volumes and closer coordination between the Treasury and primary dealers.

Trading activity has also become more evenly spread across maturities. Before the Bangko Sentral ng Pilipinas began its easing cycle in August 2024, transactions were concentrated in longer-dated bonds.

Since then, activity has shifted toward a more balanced mix across short, medium and long tenors, a development market participants see as positive for yield-curve formation and price discovery.

Liquidity gains were not limited to institutional instruments. Retail Treasury Bonds (RTB) have emerged as a more actively traded segment, with turnover accelerating over the past three years.

On an aggregate basis covering recent RTB issuances, the turnover ratio reached 2.4 in 2025, indicating that trading activity is now growing faster than the outstanding stock of retail debt.