CP issuances fall to 1-year low in October as rates rise by 30 bps

Issues of commercial paper fell to nearly a one-year low in October due to rising rates caused by tight liquidity conditions, according to market participants.

Commercial paper worth Rs 74,804 crore was issued in October, the lowest since October last year.

On a month-on-month basis, the issuances fell by around 38 per cent. There were issuances of more than Rs 1.21 trillion in September, according to the data with Clearing Corporation of India Ltd (CCIL).

The rates on the short-term debt instrument rose by 30 basis points across tenures in October because liquidity remained in deficit mode during the month,