(Adds details from latest data)
NEW YORK, July 31 The amount of U.S. commercial
paper outstanding rose to its highest in four weeks, suggesting
a month-end bounce in loan demand from companies to fund
inventories and payrolls, data from the Federal Reserve showed
U.S. seasonally adjusted commercial paper outstanding rose
$20.4 billion to $1.046 trillion in the week ended July 30.
These short-term corporate IOUs fell to their lowest level
in four months in the previous week.
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 $4.5 billion to $1.056 trillion.
On a seasonally adjusted basis, the bulk of the week's
increase stemmed from the domestic banks and other financial
companies that issued $15.2 billion worth of commercial paper.
Domestic non-financial firms increased their CP issuance by
Foreign financial and non-financial commercial paper
outstanding fell by a combined $2.4 billion in the latest week.
Borrowing costs for companies through issuing CP were
generally little changed 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 0.07 percent, down from 0.08 percent a week ago
(Reporting by Richard Leong; Editing by James Dalgleish)