Short-term issuances down

Issuances of certificates of deposit (CDs) fell on Monday because mutual funds preferred to remain on the sidelines on fear of slight redemptions next week, dealers said.

On Monday, short-term money market instruments worth around Rs 1,740 crore were placed in the market. Banks and companies will make payments towards the second installment of corporate advance taxes by September 15. Three-month CDs were quoted at 6.95-7.15 per cent as against 6.9-7.1 per cent on Friday, while three-month commercial papers were quoted at 7.35-7.55 per cent.