This week, yields on benchmark Chinese government bonds surprised investors. They first traded at their highest levels in three years, and then reversed much of the move in the middle of the week as the 10-year paper was sold at an auction at a yield of 3.82 per cent, missing expectations and below those in the secondary market. This has created a potential false break and a weekly spike high reversal candle against retracement resistance on good futures volume and a relative strength index at an extreme reading. With yield at 3.891 per cent on Friday afternoon and a futures price of 92.885 yuan (US$14.06), doubts are cast over the view that yields have peaked and prices bottomed.