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Research Paper | Economics | Indonesia | Volume 5 Issue 8, August 2016

Analysis the Influence of Internal Factor and External Factor on Yield Bonds Government in 2011-2014

Utami Yuliani | Bambang Juanda | Trias Andati ^[5]

Abstract: The decline of growth Indonesian economy caused investors to diversify their investment, therefore, the Indonesian government bond market has grown so rapidly. This study aims to analyze the relationship and influence of internal factor and external factor on yield bonds government. Bond yields in this study using a long-term government bonds ( >10 years) with fixed coupon bond and short term with zero coupon bond ( < 1 year). The study examines the internal factors consist of coupon bond, maturity and duration, while external factors consist of interest rate, inflation and the exchange rate to U. S dollar, for the period 2010 to 2014. The research shows that yield influenced by all factors except exchange rate, beside of that FEDV results showed that external factors had more contribution in bonds with long term tenors and internal factors had more contribution in bonds with short term tenor.

Keywords: Bonds, VAR, macroeconomic

Edition: Volume 5 Issue 8, August 2016,

Pages: 1090 - 1096