Liquidity recovers slightly on injections

Обзор облигаций 12.09.2014 Banks' correspondent accounts with the NBU rose UAH1.28bn to UAH31.03bn yesterday after injections from the NBU and the MoF. Total CDs outstanding slid UAH0.08bn to UAH12.70bn while total local currency debt repayments scheduled for the next 30 days declined UAH0.60bn to UAH6.11bn. KyivPrime interest rates once more slightly declined: the KyivPrime ON interest rate continued increase and rose 22bp to 8.60% while the KyivPrime 1M interest rate slid 10bp to 15.40%. Investment implications: After the NBU issued UAH1.0bn in three-month loans to eleven banks, UAH0.60bn in debt repayments in local currency were fulfilled and banks' correspondent accounts with the NBU increased to UAH31.03bn. Broader banking sector liquidity remained below UAH50.0bn and should not rise above this level anytime soon without significant support from the NBU's side.