The market for corporate borrowing through short-term IOUs expanded for the first time in six weeks, boosted by an increase in issuance from U.S. financial institutions.
The seasonally adjusted amount of U.S. commercial paper rose $200 million to $1.0631 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. That’s the first increase since the period ended Jan. 16 when the market surged $27.8 billion.
Commercial paper issued by U.S.-based banks also rose for the first time in six weeks, climbing $6.7 billion to $317.4 billion outstanding, according to the Fed. Corporations sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as rent and salaries.