July 24 The amount of U.S. commercial paper
outstanding fell to its lowest level in four months, hinting at
some slowing in demand from companies for loans to fund
inventories and payrolls, data from the Federal Reserve showed
Seasonally adjusted U.S. commercial paper outstanding fell
for a fourth consecutive week. It declined $2.4 billion in the
week to July 23 to $1.026 trillion, according to central bank
This was the lowest level since $1.025 trillion in the week
ended March 26.
Government reports showed a solid 0.5 percent growth in
business inventories in May and employers added 288,000 workers
in June, but some data signaled some pullback in hiring and
stock building in recent weeks.
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 $3.9 billion in the latest week to $1.051
U.S. non-seasonally adjusted non-financial commercial paper
outstanding rose $2.2 billion to $275.7 billion, while financial
CP increased $4.0 billion on the week at $532.1 billion.
Asset-backed commercial paper outstanding, which was not
adjusted for seasonal factors, fell $2.4 billion to $243.3
billion in the latest week.
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 0.08 percent on Wednesday, unchanged
from a week earlier, while the average rate on 30-year financial
CP was 0.08 percent, down from 0.10 percent a week ago.
(Reporting by Richard Leong; Editing by David Gregorio)