Liquidity down slightly

Обзор облигаций 08.09.2014 Liquidity declined slightly last Friday as postponed FX demand was satisfied last Thursday with funds for FX purchases that were deposited three days earlier. Broader banking sector liquidity declined UAH0.95bn to UAH48.99bn last Friday as banks' correspondent accounts with the NBU declined UAH0.47bn to UAH31.33bn while total CDs outstanding declined UAH0.48bn to UAH13.23bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH4.42bn. KyivPrime interest rates unchanged with the KyivPrime ON rate at 8.10% and the KyivPrime 1M rate at 15.10%. Investment implications: Although liquidity slightly increased last Monday through Wednesday as new NBU FX market regulations postponed outflows for three days, last Thursday's deals caused liquidity to decline last Friday. As this decline was anticipated and volume was not significant, interest rates remained unchanged.