Investing.com - Copper futures trimmed losses during European morning hours on Thursday, coming off the lowest levels of the session after Spain saw strong demand at an auction of long-term government debt earlier in the day.
Prices remained supported amid growing hopes for further easing measures by the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.344 a pound during European morning trade, dropping 1%.
It earlier fell by as much as 1.35% to trade at a session low of USD3.330 a pound. Prices touched a one-week high of USD3.381 a pound on Wednesday.
Copper futures remained lower after Spain’s Treasury sold EUR2.288 billion of two-, four- and ten-year government debt earlier in the day, above the full targeted amount of EUR2 billion.
The country sold EUR638 million worth of two-year government bonds maturing in October 2014 at an average yield of 4.335% earlier in the day, up from 3.463% at a similar auction last month.
Spain also sold EUR611 million of ten-year debt at an average yield of 6.044%, up from 5743% at a similar auction last month. The bid-to-cover ratio stood at 3.29, compared to 2.42 at an auction in May.
The yield on Spanish 10-year bonds eased to 6.13% following the auction, down from 6.31% hit on Wednesday.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Concerns about Spain’s banks have grown since Bankia, the country’s fourth-largest lender, said last month it needed EUR19 billion in state aid to shore itself up against bad loans.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
But prices remained supported amid growing speculation the Federal Reserve will consider more action to stimulate growth in the U.S.
Hopes for such action were lifted by comments from Fed Vice chair Janet Yellen, who said in a speech Wednesday that the central bank could further ease monetary conditions in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis.
Her comments came after Atlanta Federal Reserve President Dennis Lockhart said that sustained weakness in the job market could justify more action to support the economic recovery.
Attention now shifts to a Congressional testimony by Federal Reserve Chairman Ben Bernanke later in the day about the state of the U.S. economy. Traders will be looking for any hints that the Fed is considering more monetary stimulus.
The Wall Street Journal, citing interviews and Fed speeches, reported late Tuesday that the Fed was mulling new measures to stimulate growth in the world’s largest economy.
Elsewhere on the Comex, gold for August delivery declined 0.65% to trade at USD1,623.05 a troy ounce, while silver for July delivery fell 0.7% to trade at USD29.27 a troy ounce.
Prices remained supported amid growing hopes for further easing measures by the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.344 a pound during European morning trade, dropping 1%.
It earlier fell by as much as 1.35% to trade at a session low of USD3.330 a pound. Prices touched a one-week high of USD3.381 a pound on Wednesday.
Copper futures remained lower after Spain’s Treasury sold EUR2.288 billion of two-, four- and ten-year government debt earlier in the day, above the full targeted amount of EUR2 billion.
The country sold EUR638 million worth of two-year government bonds maturing in October 2014 at an average yield of 4.335% earlier in the day, up from 3.463% at a similar auction last month.
Spain also sold EUR611 million of ten-year debt at an average yield of 6.044%, up from 5743% at a similar auction last month. The bid-to-cover ratio stood at 3.29, compared to 2.42 at an auction in May.
The yield on Spanish 10-year bonds eased to 6.13% following the auction, down from 6.31% hit on Wednesday.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Concerns about Spain’s banks have grown since Bankia, the country’s fourth-largest lender, said last month it needed EUR19 billion in state aid to shore itself up against bad loans.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
But prices remained supported amid growing speculation the Federal Reserve will consider more action to stimulate growth in the U.S.
Hopes for such action were lifted by comments from Fed Vice chair Janet Yellen, who said in a speech Wednesday that the central bank could further ease monetary conditions in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis.
Her comments came after Atlanta Federal Reserve President Dennis Lockhart said that sustained weakness in the job market could justify more action to support the economic recovery.
Attention now shifts to a Congressional testimony by Federal Reserve Chairman Ben Bernanke later in the day about the state of the U.S. economy. Traders will be looking for any hints that the Fed is considering more monetary stimulus.
The Wall Street Journal, citing interviews and Fed speeches, reported late Tuesday that the Fed was mulling new measures to stimulate growth in the world’s largest economy.
Elsewhere on the Comex, gold for August delivery declined 0.65% to trade at USD1,623.05 a troy ounce, while silver for July delivery fell 0.7% to trade at USD29.27 a troy ounce.