Rates rose 5-10 basis points in the primary market on Thursday on views liquidity may tighten next week due to corporate advance tax outflows, dealers said.
Three-month certificates of deposit were quoted at 7.1-7.2 per cent as against 6.9-7.1 per cent on Wednesday, while three-month commercial papers were quoted at 7.4o-7.65 per cent compared with 7.3-7.5 per cent on Wednesday.
Market participants expect around Rs 25,000-30,000 crore to move out of the banking system by September 15 towards payment of the second instalment of corporate advance tax.