Commercial Paper Expands for First Time in Three Weeks, Fed Says

The market for corporate borrowing through short-term IOUs expanded for the first time in three weeks, led by a rise in issuance from financial institutions.

The seasonally adjusted amount of U.S. commercial paper outstanding rose $3.3 billion to $988.2 billion in the week ended yesterday, the Federal Reserve said today on its website. That’s the highest level since the week ended July 24.

Commercial paper sold by non-U.S. financial institutions rose for a fifth week, increasing $2.2 billion to $248.1 billion. That’s the highest level since the week ended Jan. 30. The amount issued by U.S.-based banks increased for the first time in three weeks, climbing $4 billion to $260.4 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.

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