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U.S. Commercial Paper Outstanding Jumps the Most in Five Months, Fed Says

U.S. commercial paper outstanding jumped the most in five months, the Federal Reserve said today on its Web site.

The market for short-term IOUs without seasonal adjustment $19.7 billion to $1.1 trillion in the week ended April 28, the biggest jump since the week ended Nov. 18 and the highest level since March 10, according to data compiled by Bloomberg. With seasonal adjustment, commercial paper outstanding rose $32.9 billion to $1.11 trillion, the highest since the period ended March 31.

The third straight weekly increase was “healthy” even though the market is yet to signal clear economic improvement, said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York. Seasonally adjusted commercial paper fell to $1.07 trillion in July, the lowest since at least 2000, and compares with the peak of $2.22 trillion in July 2007, Bloomberg data show.

“You’d want to see some confirmation of strength over the next several weeks,” Greenhaus said today in a telephone interview.

Without seasonal adjustment, commercial paper outstanding from financial issuers increased $13.1 billion, the biggest jump in a month and the third straight increase, to $568.2 billion, Bloomberg data show. That’s the highest level since March 10. Seasonally adjusted financial paper outstanding rose $23.5 billion to $562.1 billion, the highest since March 31.

To contact the reporter on this story: John Detrixhe in New York at jdetrixhe1@bloomberg.net

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