The Effect of Consumer Expectation Index, Economic Condition Index and Crude Oil Price on Indonesian Government Bond Yield

Tjandrasa, Benny Budiawan (2017) The Effect of Consumer Expectation Index, Economic Condition Index and Crude Oil Price on Indonesian Government Bond Yield. Journal of Economics, Business, and Accountancy Ventura, 20 (1). pp. 1-12. ISSN 2087-3735

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Abstract

Governments sell bonds to finance their budget. In this case, the investors are wil ling to buy government bonds because they want to get the yield. On the other hand, when the government bond yields is too high it would burden the state in paying the due interest. Various studies have been done to find the variables that affect government bond yield significantly, such as exchange rate, inflation rate, interest rate, and oil price. This study found two more variables namely consumer expectations index and the economic conditions index to complement the variables that have been discovered. These two variables are used as a proxy of economic stability of a country, the increase of those variables represent the increase of economic stability and will reduce the level of risk and lowering the yield that investors demand. This r esearch uses descriptive method and explanatory study with secondary data using multivariate regression equation model. The results show consumer expectation index and economic condition index have significant effect on Indonesian Government Bond yield. To keep the consumers’ expectation for the increase of index and economic condition, the government should give a positive signal and a sense of security to investors.

Item Type: Article
Uncontrolled Keywords: Government Bond Yield, Consumer Expectations Index, Economic Conditions Index, Oil Price, and Interest Rate.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Depositing User: Perpustakaan Maranatha
Date Deposited: 19 Jun 2019 05:48
Last Modified: 19 Jun 2019 05:48
URI: http://repository.maranatha.edu/id/eprint/26779

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