Bonds: Liquidity continues to recover

Обзор облигаций 15.09.2014 Broader liquidity continued to recover, rising UAH1.43bn to UAH51.27bn on Friday, above UAH50.0bn for the first time this month. Banks' correspondent accounts with the NBU rose UAH1.46bn to UAH32.48bn while total CDs outstanding slid UAH0.03bn to UAH12.67bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH6.11bn. KyivPrime interest rates once more slightly declined: the KyivPrime ON interest rate fell 29bp to 8.31%, after having increased for several days, while the KyivPrime 1M interest rate rose 10bp to 15.50%. Investment implications: Liquidity once more rose last Friday likely on the NBU's support last Wednesday, and in the apparent absence of outflows. This week, liquidity could remain near the current level of UAH50.0bn as month-end tax payments are scheduled next week.