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Informist, Tuesday, Sept. 15, 2026

 

By Meera Nair 

 

MUMBAI – Yields on certificates of deposit and commercial papers rose across key tenors Tuesday as expectations of an interest rate hike by the US Federal Reserve and upcoming open market operation sales of government bonds prompted caution among market participants, dealers said. Trading activity was subdued due to the extended weekend, with Indian financial markets shut Monday for Ganesh Chaturthi.

 

Yields on CD rose by 10-15 basis points across maturities. "AAA"-rated three-month CD yields rose to 6.15% from 6.00-6.05% Friday. Six-month CD yields rose to 6.75-6.80% from 6.50-6.60%, while one-year CD yields rose to 7.25-7.30% from around 7.05%. The three-month segment was the most active in the CD market.

 

The Reserve Bank of India's net liquidity absorbed--a proxy for the banking system's liquidity surplus--was INR 10.41 trillion Monday, down from INR 10.81 trillion Sunday and INR 10.82 trillion Saturday. The liquidity surplus was INR 10.73 trillion Friday but increased over the weekend as banks reduced their cash balances.

 

Yields on "AAA"-rated three-month CP issued by non-banking financial companies were unchanged at around 6.70%. Six-month CP yields rose to 7.15% from 7.05-7.10% previously, while there were no trades in the one-year segment.

 

Primary issuances in the CP market were INR 101 billion, down from INR 303.91 billion Friday, according to CCIL data. Bharat Petroleum Corp. Ltd. borrowed INR 30 billion through a 42-day CP at a weighted average yield of 5.95%, while Reliance Industries raised INR 9 billion via 91-day CP at a yield of 6.00%. HDFC Securities raised a total of INR 11 billion through 45- and 14-days at 6.82% and 6.50%, respectively. Other key issuers included Hindustan Petroleum Corp., Bajaj Financial Securities, and Titan Co.

 

In the secondary market, CD market volume was INR 92.3 billion, down from INR 103.5 billion Friday, while the CP market volume rose marginally to INR 39.75 billion from INR 39.6 billion. Punjab and Sind Bank was the only issuer in the CD market and borrowed INR 10 billion through a 54-day CD. 

 

In the coming days, dealers expect liquidity to tighten and short-term debt rates to rise while expecting better activity in the market.

 

--Primary market

* Punjab and Sind Bank was the CD issuer.

* Bharat Petroleum Corp., Reliance Industries, HDFC Securities, Tata Steel, Hindustan Petroleum Corp., Bajaj Financial Securities, and Titan Co. were among key CP issuers.  

 

--Secondary market

* HDFC Bank's CD maturing Wednesday was traded six times at a weighted average yield of 5.10%.
* ICICI Securities's CP maturing Wednesday was traded twice at a weighted average yield of 5.10%.

 

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:

 

Certificates of deposit		Commercial paper
Tuesday	Friday	Tuesday	Friday
92.30	103.50	39.75	39.60

 

End

 

Edited by Shubhayan Bhattacharya

 

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