The market for corporate borrowing through commercial paper expanded for a third week, led by an increase in the short-term IOUs of nonfinancial firms.
The seasonally adjusted amount of U.S. commercial paper increased $2 billion to $1.04 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. That’s the highest level since the market touched $1.048 trillion in the period ended May 29.
IOUs issued by non-financial companies rose for a ninth week, climbing $9 billion to $231.4 billion outstanding, the highest level since the period ended Feb. 27, the Fed said. Corporations sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as rent and salaries.
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