Issuances of short-term money market instruments rose manifold today because mutual funds, the major investors in such papers, were keen on investing due to inflows in their fixed maturity plans, dealers said.
Today, short-term money market instruments worth around Rs 5,365 crore were placed as against Rs 625 crore on Tuesday.
Banks were also keen on issuing certificates of deposit as they expect rates to rise marginally if the Reserve Bank of India hikes policy rates Thursday.
Rates on short-term papers fell five to 10 basis points today due to huge demand from investors.
