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US commercial paper market grows to largest since April
[NEW YORK] The amount of US commercial paper jumped to its highest in more than two months in the latest week, suggesting renewed loan demand to finance payrolls and inventories, Federal Reserve data showed on Thursday.
US seasonally adjusted commercial paper outstanding soared US$68.3 billion to US$1.021 trillion in the week ended July 8. This was the largest amount since the week of April 29, when it stood at US$1.023 trillion, according to Fed data.
Non-seasonally adjusted commercial paper outstanding rose less on the week, up US$22.5 billion at US$1.025 trillion. Some analysts consider that a more reliable reading than the seasonally adjusted one since it has been distorted by the financial crisis.
The non-seasonally adjusted measure of commercial paper activity better matched with the latest week's inflows into money market funds, which are major buyers of these ultra-short corporate debt.
US money fund assets grew by US$13.57 billion to US$2.650 trillion in the week ended July 7, the Money Fund Report said on Wednesday.
Non-seasonally adjusted figures have had less volatility than seasonally adjusted ones in recent weeks.
US non-seasonally adjusted financial commercial paper outstanding rose US$9.3 billion to US$520.4 billion.
Non-financial commercial paper outstanding, without seasonal adjustments, increased by US$16.3 billion to US$271.7 billion.
Asset-backed commercial paper supply, not seasonally adjusted, fell US$3.7 billion to US$224.2 billion.