Banking sector liquidity declines

Обзор облигаций 13.11.2014 Broader banking sector liquidity declined UAH1.02bn yesterday to UAH52.18bn as banks' correspondent accounts with the NBU fell UAH2.51bn to UAH31.36bn while total CDs outstanding rose only UAH1.50bn to UAH15.67bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH5.15bn. KyivPrime interest rates slightly diverged: the KyivPrime ON interest rate rose 12bp to 10.00% while the KyivPrime 1M interest rate remained steady at 16.50% of the third consecutive day. Investment implications: The NBU replenished the UAH1.50bn spent at primary auctions by purchasing the same amount into its portfolio. As the NBU also increased its CDs outstanding by UAH1.50bn, banks' correspondent accounts fell more significantly, causing the broader indicator to decline.