Issuances of short-term money market instruments fell on Wednesday because mutual funds, the major investors for such papers, preferred to remain on the sidelines as they would face slight redemptions next week for payment towards advance taxes, dealers said.
On Wednesday, short-term money market instruments worth around Rs 1,100 crore were placed in the market as against Rs 4,500 crore on Tuesday. Three-month certificates of deposit were quoted at 6.9-7.1 per cent as against seven to 7.20 per cent on Tuesday. One-year CDs were dealt at 7.7-7.9 per cent, unchanged from Tuesday’s close.
