Copper Hits One-Week High

Pimco chief Bill Gross told CNBC that the Fed has kept Treasury yields at levels too low to present reasonable returns for most investors.

ProShares UltraShort 7-10 Year Treasury Fund (PST) was rising 0.6% to $42.63, ProShares UltraShort 20+ Year Treasury Fund (TBT) was gaining 1.3% to $37.77, iPath US Treasury 10-year Bear ETN (was) 0.7% higher at $53.76 and JPMorgan Double Short US 10 Year Treasury Futures ETN (DSXJ) was up 0.6% to $54.56.

May copper futures on Wednesday were extending the previous day's gains, rising 2.3% to $4.36 a pound and hitting a one-week high amid speculation that Chinese rate hikes won't temper the country's appetite for copper.

iPath Dow Jones-UBS Copper Subindex Total Return ETN (JJC) was popping 2.7% to $57.78, and Global X Copper Miners ETF (COPX) was up 1.4% to $20.91.

"We suspect the Chinese rate rises are not doing much to dislodge the upward run in commodities, as investors have yet to see any fallout from tighter money coming out in the way of deteriorating Chinese macro data," said MF Global analyst Ed Meir.

"Until that happens, it seems that most markets are either going to push higher (such as oil) or stay at elevated levels (such as many of the base metals)" Meir said.

Fanning the flames of copper bulls was copper-producing behemoth Freeport-McMoRan (FCX), which said that China's hunger for copper continues unabated despite its fiscal tightening and that the country's inventory of the metal will be depleted in the coming months.

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