Liquidity rises above UAH50.0bn

Обзор облигаций 07.11.2014 Broader banking sector liquidity rose UAH1.02bn to UAH50.09bn yesterday after falling in mid-October. Banks' correspondent accounts with the NBU increased UAH1.84bn to UAH31.17bn while total local currency debt repayments scheduled for the next 30 days fell UAH1.72bn to UAH4.39bn. Total CDs outstanding were up UAH0.91bn to UAH14.62bn. Despite the increase in liquidity, KyivPrime interest rates slightly rose as the KyivPrime ON interest rate rose 15bp to 9.75% and the KyivPrime 1M interest rate rose 10bp to 16.50%. Investment implications: The NBU issued UAH2.84bn on Wednesday, including UAH1.90bn of 51-day loans to 14 banks and UAH0.10bn was added to the UAH0.84bn of ON loans which were refinanced. We expect to see the impact of this support today as the 51-day loans should have been received by the banks yesterday rather than on Wednesday.