Indonesia sold 36 trillion rupiah (US$2.1 billion) of debt on Tuesday, an upsized amount that drew just 82.9 trillion rupiah of bids, according to the ministry of Finance’s debt management office. The bid-to-target ratio fell to 2.51, the weakest since March 18, according to data compiled by Bloomberg.

The waning appetite for Indonesian bonds reflects a broader selloff in the global debt markets, led by a massive slump in Japanese notes as Prime Minister Sanae Takaichi’s tax plan raised fiscal fears.

In the Southeast Asian country, populist spending and concerns over the central bank independence have added pressure to the rupiah, pushing the currency to a record low.

Overseas investors submitted bids for just 3.9 trillion rupiah of debt at the auction, well below last year’s average of 15.6 trillion rupiah, said Handy Yunianto, head of fixed-income research at PT Mandiri Sekuritas. “Foreign investors always look at yield spread and foreign-exchange risks and both of them are currently not favourable for Indonesian bonds.”

The benchmark 10-year government bond yield edged higher to 6.3% on Wednesday, the highest since October.

Bank Indonesia is set to announce its first interest-rate decision of the year later Wednesday, which would help set the direction for local bonds. Economists in a Bloomberg News survey expect the central bank to keep the policy rate unchanged.