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.

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