Issuances of short-term money market instruments fell today because mutual funds — the major investors for such papers —were not keen on investing due to low rates, dealers said.
“The rates have fallen significantly and so there is not much incentive for us to invest at such rates,” said a fund manager at a mutual fund.
Banks too are not keen on issuing CDs as the liquidity in the banking system is still abundant. Banks have been placing over Rs 1 lakh crore in Reserve Bank of India’s daily reverse repo window since April.
The three-month certificates of deposit were today quoted at 3.15-3.45 per cent today, unchanged from Wednesday. Three-month commercial papers were quoted at 3.50-3.70 per cent today, unchanged from Wednesday.
Today, UCO Bank placed Rs 400 crore of one-year CDs at 5.50 per cent.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app