Liquidity recovers slightly

Обзор облигаций 04.11.2014 Broader banking sector liquidity slightly recovered after last Friday's deals, and broader banking sector liquidity rose UAH1.38bn yesterday to UAH46.05bn, as banks' correspondent accounts with the NBU increased UAH3.44bn to UAH27.62bn and total CDs outstanding declined UAH2.05bn to UAH13.41bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH5.03bn. KyivPrime interest rates were down at the start of November. The KyivPrime ON interest rate was down 62bp to 9.88% while KyivPrime 1M interest rate slid 25bp to 16.25%. Investment implications: Liquidity recovered very little. Although banks' correspondent accounts with the NBU rose UAH3.44bn, UAH2.05bn was from CD redemptions and UAH0.74bn was from ON loans from the NBU, yielding a net increase in liquidity of only UAH0.65bn.