Jobless claims declined by 26,000 to 323,000 in the week ended March 1, fewer than any economist forecast in a Bloomberg survey and the least since the end of November, a Labor Department report showed today in Washington.
The Federal Reserve said yesterday in its Beige Book business survey that the economy in most regions grew last month even as harsh winter weather impeded hiring.
Commercial Paper
The market for corporate borrowing through short-term IOUs increased as issuance by financial institutions rose. The seasonally adjusted amount of U.S. commercial paper increased $16.3 billion to $1.028 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. That’s the highest level since the market touched $1.036 trillion in the period ended Jan. 15.
Commercial paper sold by overseas financial institutions added $11 billion to $262.9 billion, the highest level in seven weeks. The amount issued by U.S.-based banks rose $8.1 billion to $287.3 billion outstanding, the highest level since the period ended Dec. 25.
Corporations sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as rent and salaries.
GE Bonds
General Electric Co., the largest maker of jet engines, plans to sell $2.25 billion of 30-year debt that may yield 87.5 basis points more than similar-maturity Treasuries and $750 million of 10-year notes that may have a relative yield of 75 basis points, according to a person with knowledge of the transaction. That’s the first time the parent company will have sold bonds since October 2012. Previous to that, it sold debt in 2007.
GE plans to look at using its industrial balance sheet, “more efficiently,” Chief Executive Officer Jeffrey Immelt said at an investor presentation in December. In January, Chief Financial Officer Jeffrey Bornstein said the parent would be “opportunistic” in increasing borrowing.
The notes may be rated Aa3 by Moody’s, said the person, who asked not to be identified because terms aren’t set.