A massive liquidity wave is hitting markets. Copper has now reached 12k/mt, one of the strongest performing hard assets of 2025.

Market liquidity is surging:

The Treasury General Account (TGA) dropped -$78 billion over the last week, the largest liquidity injection since June.

The TGA is the US government’s main cash account at the Federal Reserve, and when it declines, cash flows directly into the financial system and boosts liquidity.

This marks the 4th-largest weekly drop this year.

Meanwhile, the Fed is set to buy ~$40 billion worth of Treasuries from December 12th to January 14th through its reserve management purchases.

On top of that, the central bank will use ~$14.4 billion of principal payments from its Mortgage-Backed Securities (MBS) to buy Treasury bills over the same period.

A wave of new liquidity is here.


LONDON, Dec 12 (Reuters) – Copper is closing ‌in ​on the $12,000 a metric ton mark as ‌expectations of soaring demand from data centres that power artificial intelligence and tight supplies collide ​with shortages outside the United States.

Valued for its exceptional electrical conductivity, copper wiring is vital in power grids that feed data centres, electric ‍vehicles and the infrastructure needed for the ​energy transition.

Copper prices are up 35% so far this year and heading for their largest gain since 2009, due to mining ​disruptions and stockpiling ⁠in the U.S. On Friday, they touched $11,952 a ton.

“Investors who want a broad basket of AI interests will also buy into financial products which include hard assets that feed into data centres,” said Benchmark Mineral Intelligence analyst Daan de Jonge. “Investors will buy copper-related assets such as ETFs.”

https://money.usnews.com/investing/news/articles/2025-12-12/how-tight-supply-ai-demand-propelled-copper-towards-12-000