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Informist, Monday, Jun. 22, 2026

By J. Navya Sruthi

MUMBAI – Yields on certificates of deposit and commercial paper were largely steady Monday as market participants refrained from taking new positions as they awaited more cues on the negotiations between the US and Iran to end the war in West Asia. Volumes were lower Monday as market participants were cautious amid low liquidity surplus in the banking system ahead of outflows for goods and services tax payments, dealers said.  

Yields on three-month CDs were unchanged from Friday at 6.60-6.65% and those on six-month and one-year were also steady at 6.65-6.70% and 7.15-7.25%, respectively, dealers said. Similarly, yields on three-month AAA-rated papers issued by non-banking financial companies were largely steady from the previous day at 6.85-6.90%. Yields on six-month and one-year commercial papers were steady at 7.48-7.55% and 7.65-7.70%, respectively. 

"(Brent) crude oil prices were below $80 per barrel because of which there was positive sentiment in the market," a dealer at a state-owned bank said. However, low liquidity surplus in the banking system offset the positive sentiment and kept the yields steady from the previous day, the dealer said.  

The net liquidity absorbed by the RBI--an indication of surplus liquidity in the banking system--was INR 306.85 billion Sunday, down from INR 322.03 billion Saturday and INR 351.90 billion Friday, according to the latest data. Market participants expect the systemic liquidity to turn deficit after GST outflows of around INR 1.5 trillion, scheduled over Monday and Tuesday. They expect the Reserve Bank of India to support the banking system's liquidity through a regular variable rate repo auctions, which is a measure to infuse temporary liquidity into the banking system. 

In the secondary market, CD trading volume fell to INR 104.15 billion Monday from INR 121.50 billion on Friday, according to Clearing Corp. of India Ltd. data. CP trading volume was at INR 57.05 billion, less than half of INR 144.53 billion Friday. Volumes were low as the market is waiting for the GST outflows to complete and liquidity to pick up due to month-end spending by the government, dealers said. 

At 1719 IST, primary market CD issuances almost halved to INR 18.50 billion Monday, from INR 28.75 billion by 1806 IST Friday, according to data from CCIL. Union Bank raised INR 27 billion through two CDs, one-month and three-month, Monday. According to data available, IDFC FIRST Bank raised INR 10 billion through the 91-day CD at 6.77%. 

Meanwhile, commercial paper issuances were INR 146.77 billion Monday, against INR 150.56 billion Friday. Issuers included HDB Financial Services, HDFC Securities, Indian Oil Corp. Ltd., Small Industries Development Bank of India, Reliance Retail Ventures, REC, Aditya Birla Housing Finance, Tata Projects, Godrej Properties, and 360 ONE Prime were the major issuers of CP Monday. 

Indian Oil Corp. raised INR 10.50 billion through an 88-day CP at a weighted average yield of 6.60%, while Adani Enterprises borrowed INR 1.50 billion at a weighted average yield of 7.25% by issuing an 88-day CP. Small Industries Development Bank of India issued 91-day CP and raised INR 35 billion at 6.65% and Relaince Retail Ventures raised INR 26 billion through 91-day CD at 6.69% Monday.

Dealers expect yields on short-term debt papers to fall by at least 10 basis points by the end of this month due to the government's month-end inflows. In the long term, the government's spending from the central bank's record surplus transfer of INR 2.87 trillion for 2025-26 (Apr-Mar), inflows through foreign currency non-resident dollar-denominated bank deposits will pull down yields further, dealers said. 

--Primary market
* Union Bank, IDFC FRIST Bank were the CD issuers. 

* India Oil Corp., Small Industries Development Bank of India, Reliance Retail Ventures, REC, Aditya Birla Housing Finance, Tata Projects, Godrej Properties, and 360 ONE Prime were the major issuers of CP Monday. 

--Secondary market

* Union Bank's CD maturing Tuesday was traded five times at a weighted average yield of 5.29%
* Small Industries Development Bank of India's CP maturing Tuesday was traded thrice at a weighted average yield of 5.26%

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed on CCIL's F-TRAC platform:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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