New information has an important role in asset price movement. This paper investigates the role of scheduled domestic news releases on the Australian government bond market. Specifically, it examines the impact of pre-announced macroeconomic news release on bond futures markets and associated market volatility. Furthermore, an EGARCH-in-mean model is used to determine the asymmetric response of the conditional volatility to either news release or unexpected changes of some news content. The results indicate that excess return of bond futures in the research period was leptokurtic (fat-tailed) with time-varying conditional heteroscedasticity. Day of the week volatility was also present but with a declining pace. It’s generally attributed to the release dates of announcements and information flow from offshore markets. Although announcement effects to the bond futures market were significant, they depended on the type of maturity. Finally, results from EGARCH indicate that fundamental lagging indicators such as CPI and GDP are always important in explaining the impact of news release on market volatility, whereas the unemployment rate has a reasonable role in announcement surprises. The data suggest the following conclusion: investors are seriously concerned with news releases on macroeconomic variables they can feasibly forecast because they are always fundamental and provide a partial indication of the future economy. Surprises from news content are also critical to investors because some important variables can only be forecasted with limited accuracy. Therefore, deviation from anticipated outcomes in the actual content also causes significant market movement. / Thesis(M.Comm.)-- School of Commerce, 2007.

[Truncated abstract] The objectives of this study are threefold: Firstly, to consider the relevance (to subnational state development) and adaptability (to globalisation) of federalism from a Western Australian perspective. Secondly, to consider the way in which various State Governments in Western Australia have implemented economic development policies to benefit from the global political economy. Finally, it proposes alternative mechanisms for guiding long-term economic development policy decision-making in Western Australia. This final objective is addressed in light of the findings of the first two. It is recognised that incremental changes are possible in full knowledge of the embedded nature of the policy-making process in Western Australia . . . In the case of Western Australia, subnational autonomy does not herald the end of the nationstate so much as a new stage in globalisation. In terms of how the Western Australian State Government attracts capital and labour investment, its history as an independent colony and its physical isolation from the other colonies have created the initial conditions that frame the policy-making process, which includes a set of drivers influencing the decisions that are made by State agents. Overall, the State Government continues to reinforce the State’s role as a peripheral resource supplier to the national and global political economy. Within this context, however, alternative strategies can be proposed that may contribute to the long-term sustainable development of the State’s economy.