Short-term issuances down

Issuances of certificates of deposit (CDs) fell on Monday because investors preferred to remain on the sidelines due to the tight liquidity in the banking system, dealers said.Around Rs 2,300 crore of CDs were placed on Monday.

Banks are still borrowing huge amounts from RBI’s repo window. RBI on Monday injected Rs 39,900 crore through the first repo tender.

Three-month certificates of deposit were quoted at 6.25-6.45 per cent on Monday, as against 6.15-6.35 per cent on Friday, while commercial papers were quoted at 6.6-6.9 per cent, compared to 6.5-6.8 per cent.

One-year CDs were dealt at 6.75-6.85 per cent, compared with 6.8-6.9 per cent Friday.