Liquidity steady on reallocations

Обзор облигаций 10.09.2014 Banks' correspondent accounts with the NBU declined slightly UAH0.64bn to UAH29.02bn yesterday as the NBU absorbed some funds via CDs, increased total CDs outstanding UAH0.85bn to UAH13.23bn. At the same time, total local currency debt repayments scheduled for the next 30 days rose a significant UAH2.29bn to UAH6.72bn, causing broader banking sector liquidity to rise UAH2.51bn to UAH48.97bn. KyivPrime interest rates slightly declined: the KyivPrime ON interest rate slid 8bp to 8.25% while the KyivPrime 1M interest rate declined 17bp to 15.50%. Investment implications: As liquidity was steady on Monday, yesterday's indicators changed little. The NBU's absorption of a small portion of liquidity did not have a negative impact on money market rates. Future debt repayments significantly rose yesterday as the MoF is scheduled to repay UAH1.50bn in a month, providing extra liquidity to the market if these repayments are not refinanced.