July 5, 2018 / 4:00 PM / 4 months ago

CORRECTED-UPDATE 1-U.S. commercial paper supply posts steepest 2-week drop since 2014

 (Corrects to say two-week fall instead of weekly fall in first
paragraph)
    NEW YORK, July 5 (Reuters) - The amount of U.S. commercial
paper outstanding posted its biggest two-week fall in 3-1/2
years as financial companies reduced their issuance of
short-term debt for a third straight week, Federal Reserve data
released on Thursday showed.
    Banks and other financial firms use commercial paper to fund
loans and securities holdings.
    Non-seasonally adjusted commercial paper outstanding - which
some analysts consider a more reliable reading than the
seasonally adjusted one since it has been distorted by the
2007-2009 global credit crisis - decreased by $25.4 billion to
$1.066 trillion in the week ended July 4.
    Over two weeks, they fell by $59.5 billion, which was the
most since a $76.2 billon fall in the last two weeks of 2014.
    Adjusting for seasonal factors, commercial paper outstanding
decreased $20.2 billion to $1.065 billion in the latest week.
    Non-seasonally adjusted financial CP outstanding fell by
$19.3 billion, which included an $11.4 billion reduction among
foreign banks and other financial institution. 
    Total non-financial CP, not adjusted for seasonal factors,
declined by $6.8 billion in the latest week.

 (Reporting by Richard Leong
Editing by Susan Thomas)
  
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