Purpose – This research aims to provide the effect of the Indonesian Inflation and the rise of the US Fed rate towards the Indonesian government bond yield.
Design/methodology/approach – This paper obtained the secondary data collected from reliable sources, such as Bloomberg, Bank Indonesia official website, and Federal Reserve official website. The timeline is 10 years, starting from 2012 until 2022.
Findings – This paper shows that the inflation affect the Indonesian government bond yield positively, but the rise of the US Fed rate does not affect the Indonesian government bond yield positively.
Research limitations/implications – This study only analysed Indonesia and are limited to two factors. Therefore, future research can use more factors or compare Indonesia with other countries
Originality/value – Previous studies analyse the effect of the factors to the government bond price. While, this study analyse the effect towards the government bond yield in Indonesia.