Activity remained subdued in the short-term debt market with mutual funds maintaining a cautious stance on worries about investor interest in their schemes going forward. Banks also preferred to stay mostly on the sidelines given the upcoming Rs 10,000-crore gilt auction on Friday.
On Wednesday, three-month commercial papers were quoted at 14-15 per cent, compared with 13-14 per cent on Tuesday, while three-month CDs were quoted at 12-13 per cent versus 11-12 per cent.
Rates in the secondary market have gone down significantly as systemic liquidity has improved since last month.
December maturity CDs were dealt in the 9.75-10.25% range, unchanged from Tuesday.
March maturity papers were dealt in the range of 10.25-10.75 per cent, also unchanged from Tuesday. UCO Bank’s March maturity CDs were dealt at 10.40 per cent on Wednesday.