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Almana : Jurnal Manajemen dan BisnisAlmana : Jurnal Manajemen dan Bisnis

Bond investors can calculate investment income on the funds invested in these bonds using a yield measurement tool. Yield is used, which is the primary metric investors use to assess investment profitability, aid decision-making, and assess potential risk. Bond yields and their movements reflect information about economic prospects, risks, and market functioning. This study aims to analyze the variables that influence the Indonesian 10-year government bond yield. Government bond yields are crucial economic indicators because they reflect market expectations for future growth, inflation, interest rates, and signaling economic health. Rising yields often suggest growth/inflation fears, while falling yields signal economic slowdown or demand for safety; the yield curves shape is a powerful recession predictor. The independent variables that influence Indonesias 10-year government bond yield analyzed in this study are inflation, the BI rate, CDS, Brent oil, and the percentage change in the 10-year Treasury yield.

Based on the regression analysis, it can be concluded that the variables with significant effects are Inflation, the BI rate, CDS, and Brent Oil.However, the percentage change in the IDR/USD exchange rate and the percentage change in the 10-year Treasury yield did not.Inflation had a negative and significant effect on the Indonesian 10-year Government Bond Yield.The BI rate had a positive and significant effect on the Indonesian 10-year Government Bond Yield.CDS and Brent Oil had a positive and significant effect on the Indonesian 10-year Government Bond Yield.The percentage change in the IDR/USD value had a negative and insignificant effect.It is recommended that the government can take actions to reduce Indonesias CDS and the influence of Brent Oil fluctuations on the Indonesian 10-year Government Bond Yield.For further research, it is recommended to conduct research by adding other variables such as the Singapore 10-year Government Bond Yield or changes in the prices of Indonesias main export commodities.

To further enhance our understanding of the factors influencing Indonesias 10-year government bond yield, we suggest exploring the impact of Singapores 10-year government bond yield on Indonesias market. Additionally, investigating the relationship between changes in the prices of Indonesias key export commodities and the bond yield could provide valuable insights. Finally, a comprehensive analysis of the influence of Brent Oil fluctuations on the bond yield, considering Indonesias dependence on oil imports, would contribute to a more nuanced understanding of this complex economic landscape.

  1. Analyze Factors Affecting Indonesia 10-Year Government Bond Yield Period 2021-2025 | Almana : Jurnal... doi.org/10.36555/almana.v10i1.2998Analyze Factors Affecting Indonesia 10 Year Government Bond Yield Period 2021 2025 Almana Jurnal doi 10 36555 almana v10i1 2998
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