Abstract

The purpose of this research is to analyze macroeconomics, namely Inflation, Gross Domestic Product, Exchange Rates, Interest Rates and Sovereign Risk to Indonesia 10-Year Government Bond Yield. The population in this study were all government bond yield tenors of the benchmark series for the period 2017 to 2019. The type of research used in this study is causal associative research. The research sample is Indonesian government bonds with a tenor of 10 years. The sample amounted to 36 data. The data analysis technique used multiple regression analysis method. The results showed that inflation and Gross Domestic Product have no effect on the Indonesia 10-Year Government Bond Yield. Exchange Rates, Interest Rates and Sovereign Risk have a positive and significant effect on the Indonesia 10-Year Government Bond Yield.

Highlights

  • IntroductionThe issuance of Government bonds is increasing

  • Every year, the issuance of Government bonds is increasing

  • The lowest Consumer Price Index value occurred in January 2017, this was due to adequate demand at the beginning of the year with the availability of goods and the controlled exchange rate of the rupiah where there was an increase in international commodity prices

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Summary

Introduction

The issuance of Government bonds is increasing. The highest increase in outstanding was achieved in 2016 of 24.35% compared to 2015. The consecutive increases indicate the increasing demand for Government bonds in the capital market. The Directorate General of Budget Financing and Risk Management (DJPPR) (2020). Stated that Total ownership of Government Securities traded as of December 31, 2019 was. Foreign ownership of Government Securities was still dominated at Available Online: https://dinastipub.org/DIJDBM

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