NEW YORK, April 24 The amount of U.S. commercial
paper outstanding slipped in the latest week from a three-month
high, suggesting the pickup in loan demand from companies to
fund inventories and payrolls has leveled off, data from the
Federal Reserve showed on Thursday.
Seasonally adjusted U.S. commercial paper outstanding fell
for the first time in five weeks. It declined $1.7 billion in
the week to April 23 to $1.043 trillion, according to central
Recent data showed U.S. employers have picked up the pace of
hiring and continued to accumulate inventories, supporting the
view the economy is regaining some of the momentum lost during a
Issuance fell modestly on the week partly due to the Easter
Seasonally adjusted levels of this short-term debt from
non-financial companies dipped by $1.7 billion to $280.1
billion, while the amount of financial CP decline by $500
million to $529.7 billion.
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, rose $10.8 billion to $1.077 trillion, which
was the highest level since the week of May 29, 2013.
U.S. non-seasonally adjusted foreign financial commercial
paper outstanding rose $4 billion to $267.7 billion, while
domestic financial CP was little changed on the week at $287.3
Borrowing costs for companies through issuing CP little
changed to lower on the week, Fed data showed.
For example, the average interest rate on non-financial CP
that matures in 30 days was 0.06 percent on Wednesday, compared
with 0.05 percent a week earlier. The average rate on 30-year
financial CP was 0.05 percent, down from 0.08 percent a week
(Reporting by Richard Leong; Editing by Chizu Nomiyama)