The market for corporate borrowing through U.S. commercial papercontracted for the first time in six weeks, led by a decline inissuance from financial institutions, as Europe's sovereign-debtcrisis intensified.

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

Demand from money-market funds, among the biggest investors inthe market, is constrained by concern that fiscal upheaval inEurope will infect bank balance sheets and curb economic growthacross the world. Federal Reserve Chairman Ben S. Bernanke saidtoday the economy is at risk from Europe's debt turmoil and theprospect of fiscal tightening in the U.S.

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