Key weekly market data for commercial paper reported by the Federal Reserve shows a market contraction for the week.
According to Federal Reserve data released last week, U.S. commercial paper outstanding decreased by $81 billion during the week to $1,298 billion.
Commercial paper held by the Commercial Paper Funding Facility (CPFF) also fell by $5 billion during the week to $163 billion.
Credit Suisse analysts said that they also expected the ABCP Money Market Fund Liquidity Facility (AMLF) facility to reduce its outstandings to an immaterial amount over the next 45 days.
"Next week, we would expect to see the same strong demand for ABCP early on in the week and then taper off as we head towards the holiday weekend," analysts said.
According to data released by the Federal Reserve, CPFF usage AMLF usage decreased marginally to $28.6 billion from $28.9 billion last week. The Money Market Investor Funding Facility (MMIFF) continues to remain unutilized.
The Feds exposure to the total CP market remained unchanged last week at 14% through these two programs.