Investor confidence in Philippine government securities (GS) remains strong, even amid ongoing scrutiny over corruption and questionable flood control projects, National Treasurer Sharon Almanza said.
Speaking in Taguig City, Almanza told reporters that investor demand has stayed firm, reflected in tight spreads for government papers, even as the local stock market struggles.
“The GS market is actually rallying while the stock market is down. The GS market is very robust, so we haven’t seen (the impact on government securities). Even our spread is still very tight,” she explained.
Almanza added that the domestic yield curve versus US Treasuries and Republic of the Philippines (ROP) bonds remains tight, while the country’s credit default swap (CDS) is at its lowest. “We haven’t seen any major widening of our spread,” she said.
Data from the Department of Finance (DOF) shows that as of November 24, the government had raised P2.08 trillion, almost reaching its P2.11-trillion target for the year.
Meanwhile, the Philippine Stock Exchange index (PSEi) continues to struggle. It closed Friday, November 28, at 6,022.24, down 7.76% from 6,528.79 on December 27, 2024, and hit a five-year low of 5,629.07 on November 10, 2025.
The strong GS performance comes against the backdrop of corruption concerns. In August, President Ferdinand “Bongbong” Marcos Jr. revealed that 20% of the P545-billion flood control budget went to only 15 contractors, calling it a “disturbing assessment.”
Congress is investigating alleged irregularities in public works spending, alongside a separate probe by the Independent Commission for Infrastructure (ICI) into flood control and other infrastructure projects.
“I think the investigation has been progressing, so we’re really hoping that that will address some of the concerns of people, of our investors, that the system is working,” Almanza said.
Despite the controversies, the Philippine government securities market has shown resilience, offering a safe harbor for investors in turbulent times.
