Liquidity slightly increases

Обзор облигаций 06.11.2014 Banks' correspondent accounts with the NBU rose UAH1.48bn to UAH29.34bn yesterday after receiving support from the NBU, including ON loans which increased UAH0.69bn to UAH0.84bn as total CDs outstanding decreased UAH0.37bn to UAH13.61bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH6.11bn as yesterday's debt repayments will be included in today's NBU statistics. As a result, broader banking sector liquidity rose UAH1.11bn to UAH49.06bn. KyivPrime interest rates slightly diverged as the KyivPrime ON interest rate slid 10bp to 9.60% while the KyivPrime 1M interest rate remained steady at 16.40%. Investment implications: NBU support was the main source for the rise in liquidity indicators. Without support, broader banking sector liquidity would have increased only 0.42bn. We expect some indicators to decline today if a portion of yesterday's redeemed bonds came from the NBU's portfolio.