Commercial Paper Market Contracts Again

Seventh consecutive weekly decline led by decline in issuance by U.S. financial institutions.

The market for corporate borrowing through U.S. commercial paper fell for a seventh week, led by a drop in issuance from domestic financial institutions to the lowest level in at least a decade, as companies turned to the bond market with rates at record lows.

The seasonally adjusted amount of U.S. commercial paper dropped $21.2 billion to $943.6 billion outstanding in the week ended yesterday, the seventh straight weekly decline, the Federal Reserve said today on its website. That’s the longest stretch of decreases since the period ended Oct. 19, 2011, and the lowest level since the market touched $939.9 billion May 2, according to Fed data compiled by Bloomberg.

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