(Adds details from latest data)
NEW YORK, July 31 (Reuters) - 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 on Thursday.
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 $5.0 billion.
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)