Rates on short-term debt instruments fell by 25-30 basis points today, as liquidity in the banking system has improved significantly, dealers said.
Today, State Bank of Travancore placed three-month certificates of deposits at 8.70 per cent, down from 9.06 per cent on Tuesday.
Three-month certificates of deposit were today dealt at 8.60-8.80 per cent compared with 8.90-9.10 per cent Tuesday. Three-month commercial papers were at 9.00-9.10 per cent compared with 9.05-9.15 per cent a day ago.
Rates on one-year papers were 9.30-9.50 per cent compared with 9.40-9.60 per cent Tuesday.
“The rates have fallen significantly today as the liquidity condition in the banking system has improved,” said a dealer at a mutual fund.
Banks raised around Rs 4,150 crore via certificates of deposit today compared with Rs 4,075 crore Tuesday.
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