Commercial paper market contracts in week: Fed
NEW YORK (Reuters) - The commercial paper market shrank in the latest week, suggesting a pullback in short-term business borrowing even as the U.S. economy shows signs of gaining traction, according to Federal Reserve data released on Thursday.
In the week ended April 4, commercial paper outstanding fell $6.1 billion to $931.4 billion on a seasonally adjusted basis, the Fed said.
The Fed's non-seasonally adjusted data, however, showed a different direction on commercial paper supply.
They showed this short-term credit market which companies use to raise cash to finance payrolls and inventories grew by $6.9 billion to $1.009 trillion in the latest week.
Commercial paper outstanding issued from foreign banks, on a non-seasonally adjusted basis, fell by $6.9 billion after rising $4.2 billion the previous week.
Foreign bank commercial paper outstanding slipped to $130.0 billion in the latest week.
(Reporting by Richard Leong; Editing by James Dalgleish)