July 12, 2018 / 3:02 PM / 2 months ago

UPDATE 1-U.S. commercial paper supply posts biggest rise since January

 (Adds details on latest data)
    NEW YORK, July 12 (Reuters) - The amount of U.S. commercial
paper outstanding recorded its biggest weekly increase in six
months as banks raised their issuance of short-term debt,
snapping three straight weeks of decline, Federal Reserve data
showed on Thursday.
    Banks and other financial firms use commercial paper to fund
loans and securities holdings.
    Analysts blamed the recent drop in short-term bank debt on
financial companies reducing their debt load before quarter-end
reporting.
    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 $30.2 billion to $1.096 trillion,
according to Fed data.
    This was the biggest weekly increase since a $40.4 billion
jump in the week of Jan. 10.
    Adjusted for seasonal factors, commercial paper outstanding
rose $10 billion to $1.075 trillion in the latest week.
    U.S. non-seasonally adjusted financial commercial paper
outstanding rose $30.9 billion to $560.6 billion.     

 (Reporting by Richard Leong; Editing by Bernadette Baum)
  
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