Japan companies go for short-term commercial paper on BOJ hike concerns #JapanFinance

TOKYO — Companies in Japan are reducing the maturity periods of their commercial paper, short-term debt instruments that they use to manage immediate financing needs.

Market expectations that the Bank of Japan may raise interest rates at its December policy meeting have led to concerns about rising rates for commercial paper, reducing demand for the longer-term variety. This has forced companies to focus on short-term issues of the debt.