Commercial Paper Falls

First decline in six weeks is led by drop in financial institution issuance.

The market for corporate borrowing through U.S. commercial paper contracted for the first time in six weeks, led by a decline in issuance from financial institutions, as Europe’s sovereign-debt crisis intensified.

The seasonally adjusted amount of commercial paper fell $14.7 billion to $1.014 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. The market tumbled from the highest level in eight months in the biggest weekly drop since the period ended Feb. 22, according to Fed data compiled by Bloomberg.

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