NEW YORK May 2 The U.S. commercial paper market
shrank this week to its smallest size since November as money
market funds, which are major buyers for this type of debt, have
been losing assets, Federal Reserve data released on Thursday
U.S. seasonally adjusted commercial paper outstanding fell
$12.4 billion to $997.4 billion in the week ended May 1, the
lowest level since the week of Nov. 14 when it stood at $968.6
Non-seasonally adjusted commercial paper outstanding - which
some analysts consider a more reliable reading than the
seasonally adjusted one since it has been distorted by the
financial crisis - fell $3.9 billion to $1.051 trillion.
U.S. non-seasonally adjusted foreign financial commercial
paper outstanding fell $2.3 billion to $265 billion.
Money market fund assets declined by $19.04 billion to
$2.559 trillion in the week ended April 30, the Money Fund
Report said on Wednesday.
Investors have withdrawn cash from money funds whose
interest rates have been running barely above zero and shifted
it into stocks, bonds and other higher-yielding assets.