Bonds: Liquidity decline due to tax payments

Обзор облигаций 03.11.2014 Last Friday, broader banking sector liquidity fell UAH 4.28bn to UAH44.67bn as Thursday was the last day of tax payments. Banks' correspondent accounts with the NBU declined UAH1.96bn to UAH24.18bn and total CDs outstanding were down UAH2.33bn to UAH15.46bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH5.03bn. KyivPrime interest rates continued to rise last Friday: the KyivPrime ON interest rate rose 112bp to 10.50% while the KyivPrime 1M interest rate remained steady at 16.50%. Investment implications: Liquidity fell most likely due to month-end tax payments through last Thursday. Friday's indicators fell due to these outflows.