A week-long rally in Treasuries is set to pause after yields declined to a level that may deter investors, according to Shin Kong Life Insurance Co., citing trading patterns. A graph of the 10-year rate from the beginning of May through last week forms a W-shaped pattern, said Will Tseng, who studies technical levels of Treasuries at Taipei-based Shin Kong, which has the equivalent of $52.8 billion in assets. The average yield in the middle of the formation is 1.62 percent and is a technical barrier that will weaken demand, he said. Ten-year rates have fallen to 1.63 percent as of 6:32 a.m. in London from as high as 1.86 percent on Aug. 21. “If yields close within two-to-three basis points of the technical level for the next few days, then we can say that the bullish momentum is pausing,� Tseng said. “Yields may rise again.� In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net. To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net

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