Bonds: Liquidity declines slightly

Обзор облигаций 11.11.2014 Banks' correspondent accounts with the NBU fell UAH0.54bn to UAH32.78bn yesterday while total CDs outstanding rose UAH0.15bn to UAH15.25bn and total local currency debt repayments scheduled for the next 30 days remained steady at UAH4.39bn. As a result, broader banking sector liquidity slid UAH0.39bn to UAH52.42bn. KyivPrime interest rates significantly rose: the KyivPrime ON interest rate was up 37bp to 10.00% and the KyivPrime 1M interest rate increased 25bp to 16.50%. Investment implications: The NBU increased its volume of ON loans last Friday to banks by UAH0.16bn while it absorbed UAH0.15bn via CDs. As a result, the real decline in liquidity was about UAH0.55bn.