Photo: Employees assist customers at an Apple Inc. store in Munich, Germany, on June 10, 2022.

Blue-chip companies that need to borrow in the U.S. are increasingly relying on commercial paper to avoid locking in longer-term borrowing costs in a market beset by turbulence.

With the Federal Reserve poised for a fresh interest-rate hike later today, the days when blue-chip firms could borrow super-cheaply for decades are gone, at least for now. Corporate treasurers have instead been turning more to commercial paper, a type of unsecured debt that typically lasts 270 days or less.

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