June 28, 2018 / 4:59 PM / in a year

UPDATE 1-U.S. commercial paper supply posts biggest drop since 2015

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    NEW YORK, June 28 (Reuters) - The amount of U.S. commercial
paper outstanding registered its steepest weekly decline in over
2-1/2 years as non-financial companies slashed their issuance of
short-term debt ahead of quarter-end, Federal Reserve data
released on Thursday showed.
    Companies issue short-term debt to finance their inventories
and payrolls.
    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
2007-2009 global credit crisis - fell by $34 billion to $1.091
trillion in the week ended June 27.
    That was the biggest since a $64.75 billion drop in
September 2015. 
    Adjusting for seasonal factors, commercial paper outstanding
decreased $17.3 billion to $1.085 trillion in the latest week.
    Non-seasonally adjusted non-financial commercial paper
outstanding fell by $27.3 billion, while financial commercial
paper declined by $6.5 billion.

 (Reporting by Richard Leong; Editing by Dan Grebler)
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