Investors continued to purchase three-month certificates of deposit (CD) today due to the better rates these papers offered compared with one-year CDs, dealers said.
The spread between a three-month and one-year CD is just 20-25 basis points.
Three-month certificates of deposit quoted at 8.80-9.00 per cent against 8.70-8.90 per cent Monday, while three-month commercial papers (CPs) were at 9.10-9.30 per cent against 9.00-9.20 per cent. Rates for one-year papers were at 9.00-9.20 per cent, unchanged from Monday.
