Indonesia bond selloff resumes, sending 10-year yield to 7.43%

Indonesia's bond selloff resumed Thursday, erasing much of the relief from this week's surprise rate increase as investors returned to broader concerns about the economy and policy direction. The 10-year government bond yield climbed 9 basis points to 7.43%, while the five-year yield rose 3 basis points to 7.49%. The rupiah slipped 0.1%, and the benchmark stock index fell as much as 0.9% before recovering. Officials had tried to calm foreign investors after the rate move sparked a sharp rally in the currency, bonds and equities. But markets remained volatile as traders weighed whether authorities can restore confidence after President Prabowo Subianto's interventionist agenda unsettled investors. Rising Middle East tensions and higher oil prices added pressure by threatening Indonesia's trade balance, inflation outlook and currency.