The Challenging Time for Indonesia Government Bond During Covid-19 Pandemic
The Covid-19 pandemic has hit various countries and impacted the bond market. The research aimed to analyze the effect of the Covid-19 pandemic on government bond yields. The research contributed to developing a study on the influence of the Covid-19 outbreak on the bond market. Using an event study...
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| Format: | Article |
| Language: | English |
| Published: |
Bina Nusantara University
2023-06-01
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| Series: | Binus Business Review |
| Subjects: | |
| Online Access: | https://journal.binus.ac.id/index.php/BBR/article/view/8821 |
| _version_ | 1797682241025867776 |
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| author | Mulyono Mulyono |
| author_facet | Mulyono Mulyono |
| author_sort | Mulyono Mulyono |
| collection | DOAJ |
| description | The Covid-19 pandemic has hit various countries and impacted the bond market. The research aimed to analyze the effect of the Covid-19 pandemic on government bond yields. The research contributed to developing a study on the influence of the Covid-19 outbreak on the bond market. Using an event study allowed observers to measure the impact of a particular event on financial securities. The method used was a differential test on a paired sample that tested the yield of government bonds before and after the announcement of the Covid-19 pandemic. The sample data used were the yields of government bonds at the end of 2019 and 2020. The research also used a selection of government bond yields in the Indonesia Bond Market Directory issued by the Indonesia Stock Exchange. The results show a significant influence of the Covid-19 pandemic on government bond yields. All government bond yields sampled decrease. The most significant decline occurs in government bonds with a maturity period of 1 to 5 years. The research concludes that the Covid-19 pandemic has had a significant effect on reducing the yield of government bonds. Hence, it is recommended that the government keep low-interest rates in the short term so that the yield on government bonds with maturity in the short term remains stable. |
| first_indexed | 2024-03-11T23:56:43Z |
| format | Article |
| id | doaj.art-15b3796235dd4e8c85ecc2118ae2f35b |
| institution | Directory Open Access Journal |
| issn | 2087-1228 2476-9053 |
| language | English |
| last_indexed | 2024-03-11T23:56:43Z |
| publishDate | 2023-06-01 |
| publisher | Bina Nusantara University |
| record_format | Article |
| series | Binus Business Review |
| spelling | doaj.art-15b3796235dd4e8c85ecc2118ae2f35b2023-09-18T09:26:47ZengBina Nusantara UniversityBinus Business Review2087-12282476-90532023-06-0114218519210.21512/bbr.v14i2.88217895The Challenging Time for Indonesia Government Bond During Covid-19 PandemicMulyono Mulyono0Bina Nusantara UniversityThe Covid-19 pandemic has hit various countries and impacted the bond market. The research aimed to analyze the effect of the Covid-19 pandemic on government bond yields. The research contributed to developing a study on the influence of the Covid-19 outbreak on the bond market. Using an event study allowed observers to measure the impact of a particular event on financial securities. The method used was a differential test on a paired sample that tested the yield of government bonds before and after the announcement of the Covid-19 pandemic. The sample data used were the yields of government bonds at the end of 2019 and 2020. The research also used a selection of government bond yields in the Indonesia Bond Market Directory issued by the Indonesia Stock Exchange. The results show a significant influence of the Covid-19 pandemic on government bond yields. All government bond yields sampled decrease. The most significant decline occurs in government bonds with a maturity period of 1 to 5 years. The research concludes that the Covid-19 pandemic has had a significant effect on reducing the yield of government bonds. Hence, it is recommended that the government keep low-interest rates in the short term so that the yield on government bonds with maturity in the short term remains stable.https://journal.binus.ac.id/index.php/BBR/article/view/8821government bond yieldscovid-19 pandemicfinancial securities |
| spellingShingle | Mulyono Mulyono The Challenging Time for Indonesia Government Bond During Covid-19 Pandemic Binus Business Review government bond yields covid-19 pandemic financial securities |
| title | The Challenging Time for Indonesia Government Bond During Covid-19 Pandemic |
| title_full | The Challenging Time for Indonesia Government Bond During Covid-19 Pandemic |
| title_fullStr | The Challenging Time for Indonesia Government Bond During Covid-19 Pandemic |
| title_full_unstemmed | The Challenging Time for Indonesia Government Bond During Covid-19 Pandemic |
| title_short | The Challenging Time for Indonesia Government Bond During Covid-19 Pandemic |
| title_sort | challenging time for indonesia government bond during covid 19 pandemic |
| topic | government bond yields covid-19 pandemic financial securities |
| url | https://journal.binus.ac.id/index.php/BBR/article/view/8821 |
| work_keys_str_mv | AT mulyonomulyono thechallengingtimeforindonesiagovernmentbondduringcovid19pandemic AT mulyonomulyono challengingtimeforindonesiagovernmentbondduringcovid19pandemic |