Liquidity increases due to injections

Обзор облигаций 24.09.2014 Broader banking sector liquidity jumped to an historical high since 2012, rising UAH10.66bn to UAH65.66bn yesterday. This increase was caused by a UAH9.58bn increase in banks' correspondent accounts with the NBU to UAH41.44bn and a UAH1.15bn increase in total local currency debt repayments scheduled for the next 30 days to UAH7.56bn. Total CDs outstanding slid UAH0.08bn to UAH16.66bn. KyivPrime interest rates only slightly diverged: the KyivPrime ON interest rate slid 2bp to 8.38% while the KyivPrime 1M interest rate rose 3bp to 15.63%. Investment implications: Yesterday's liquidity indicators rose after the NBU purchased about UAH13.00bn in its portfolio from the other residents' portfolio. There were likely bonds from Naftogaz's portfolio which will be spent on FX, but not likely from the FX market.