Bonds: Liquidity declines slightly

Обзор облигаций 09.10.2014 Banking sector liquidity slightly declined yesterday after having risen significantly since the beginning of the month. Banks' correspondent accounts with the NBU fell UAH1.19bn to UAH30.55bn and total CDs outstanding slid UAH0.09bn to UAH14.09bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH6.59bn. These changes caused the broader indicator to decrease UAH1.28bn to UAH51.23bn. KyivPrime interest rates slightly diverged: the KyivPrime ON interest rate rose 25bp to 8.25% while the KyivPrime 1M interest rate remained steady at 15.38%. Investment implications: Liquidity significantly declined at the beginning of the month as the NBU redeemed a significant volume of CDs and month-end tax payments were paid. Although liquidity recovered step-by-step and the broader indicator hit UAH52.51bn on Tuesday, it declined slightly yesterday despite no news or outflows of note. Although Naftogaz payments to Gazprom are normally scheduled at this time, no gas payments are due.