Bonds: Liquidity stable

Обзор облигаций 17.11.2014 Broader banking sector liquidity rose only UAH0.23bn to UAH50.89bn last Friday as banks' correspondent accounts with the NBU rose UAH0.58bn to UAH32.46bn. After receiving UAH0.35bn from the NBU, total CDs outstanding slid UAH0.35bn to UAH15.45bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH2.99bn. KyivPrime interest rates significantly rose at the end of last week: the KyivPrime ON interest rate increased 97bp to 11.17% while the KyivPrime 1M interest rate was up only 27bp to 16.67%. Investment implications: The NBU issued the same volume of ON loans which had to be repaid last Thursday. As the NBU has provided no additional support to liquidity per its recent policy, money market interest rates have risen significantly since this summer. If this continues, we could see new record high rates soon, particularly at the end of the month.