Company borrowing through short-term IOUs has shrunk to thelowest level since 2012 as money-market funds continue to pull backamid low yields due to the Federal Reserve's easy money policy.

The seasonally adjusted amount of U.S. commercial paperdecreased for a fifth straight week to $964 billion outstanding inthe period ending Wednesday, according to Federal Reserve data.Corporations sell commercial paper, typically maturing in 270 daysor less, to fund everyday activities such as rent and salaries.

Declining demand from money-market funds, among the biggestbuyers of the debt, is curbing commercial-paper sales. Total assetsin the funds have fallen by $100 billion this year to $2.6 trillionon May 13, according to the Investment Company Institute. The totalhas dropped from $2.7 trillion on Dec. 31, the highest level sinceJune 2011.

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