Indonesia's government bond market selloff resumed on Thursday, with prices continuing to fall after a surprise interest-rate hike earlier in the week failed to restore investor confidence. The renewed selling pressure marks a return to the downward trajectory that has characterized trading in recent sessions.

The central bank's unexpected rate increase had briefly stabilized markets, offering temporary respite from the ongoing bond market rout. However, investors quickly shifted focus back to underlying economic concerns that have been driving the broader market weakness. This pattern suggests that monetary policy interventions alone may be insufficient to address deeper structural issues affecting market sentiment.

Market confidence remains fragile as traders weigh the effectiveness of policy responses against persistent economic headwinds. The bond market's inability to sustain gains following the rate hike indicates that investors are looking beyond short-term measures for more comprehensive solutions to Indonesia's economic challenges.

The continuing decline reflects a broader risk-off sentiment among investors who remain unconvinced that recent policy actions adequately address fundamental economic concerns. This persistent weakness suggests markets are demanding more substantial measures to restore confidence in Indonesia's economic outlook.