(Adds background on latest data)
NEW YORK, June 12 The amount of U.S. commercial
paper outstanding grew to its highest in more than five months
in the latest week, signaling increasing demand for private
loans to finance inventories and payrolls, Federal Reserve data
showed on Thursday.
U.S. seasonally adjusted commercial paper outstanding rose
for a second week, up $7.6 billion to $1.046 trillion in the
week ended June 11.
This reading on short-term company borrowing has risen $56
billion since early February as the economy recovers from a
The government said on Thursday business inventories grew
0.6 percent in April following a 0.4 percent rise in March.
Last week, official data showed U.S. employers added 217,000
workers in May after a 282,000 increase in April.
On the other hand, non-seasonally adjusted commercial paper
outstanding, which some analysts consider a more reliable
reading than the seasonally adjusted one, a measure which was
distorted by the financial crisis, fell $4.2 billion to $1.100
trillion. This figure was roughly $23 billion below a near
three-year peak set in May, Fed data showed.
Interest rates on one-month commercial paper rose this week.
For example, top-rated nonfinancial companies on average
sold these one-month IOUs at a 0.07 percent rate on Wednesday,
compared with 0.05 percent last week, according to the Fed.
Banks and other financial firms sold one-month commercial
paper at an average interest rate of 0.09 percent, compared with
0.05 percent a week earlier.
(Reporting by Richard Leong; Editing by James Dalgleish)