Three-month certificates of deposit (CDs) were quoted at 7.15-7.35 per cent as against 7.1-7.3 per cent on Wednesday, while three-month commercial papers (CPs) were quoted at 7.4-7.6 per cent, compared with 7.35-7.55 per cent. Rates in one-year segment were 7.8 to eight per cent as against 7.75-7.95 per cent on Wednesday.
According to fund managers, a further rise in policy rates would depend on the inflation and the IIP numbers. They added, the evolving domestic macroeconomic factors would also be a factor for any further raising of the policy rates.
Today, short-term money market instruments worth around Rs 3,400 crore were placed as against Rs 5,365 crore on Wednesday. “The rate hike was already factored in as the short-term papers were trading keeping six per cent repo rate in mind. A further rise in the short-term paper will be muted,” said Dwijendra Srivastava, head-fixed income, Sundaram BNP Paribas Mutual Fund.
