Rates were up 10-20 basis points in the three-month segment on the view liquidity is likely to tighten in the coming weeks due to payments towards 3G auctions, dealers said.
On Monday three-month Certificates of Deposit (CDs) were quoted at 4.7-4.9 per cent,compared with 4.5-4.7 per cent on Friday, while three-month commercial papers remained unchanged at 4.8-5 per cent.
Issuances fell on Monday as most MFs avoided buying CDs on the view they may buy such papers at higher rates in the coming weeks.
On Monday, only Rs 800 crore worth of CDs were placed as most banks also avoided buying CDs at a cheaper rate.
One-year CDs were quoted at 6.25-6.55 per cent, compared with 6.4-6.6 per cent on Friday.
This week, dealers expect rates to rise 25-30 basis points if liquidity tightens further.
