Bonds: Liquidity stable on reallocations

Обзор облигаций 11.09.2014 Broader banking sector liquidity slightly rose yesterday on fund reallocations. The broader indicator rose UAH0.27bn to UAH49.24bn while banks' correspondent accounts with the NBU recovered UAH0.73bn to UAH29.75bn and total CDs outstanding declined UAH0.46bn to UAH12.78bn. At the same time, total local currency debt repayments scheduled for the next 30 days remained steady at UAH6.72bn. KyivPrime interest rates slightly diverged: the KyivPrime ON interest rate rose 13bp to 8.38% while the KyivPrime 1M interest rate remained steady at 15.50%. Investment implications: Banks' accounts were supported by the NBU via a portion of CD redemptions. Slight changes could occur following FX market regulations and FX purchasing postponement for three days. As a result, without large outflows, liquidity should remain mostly steady. We could see slightly greater changes after yesterday's debt repayments, but as yesterday's repayments were mostly in FX, it will be insignificant.