Bonds: Liquidity declines

Обзор облигаций 18.11.2014 Liquidity fell significantly yesterday. Broader banking sector liquidity declined UAH2.84bn to UAH48.05bn last Friday as banks' correspondent accounts with the NBU decreased UAH2.68bn to UAH29.78bn and total CDs outstanding slid UAH0.17bn to UAH15.28bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH2.99bn. KyivPrime interest rates continued to increase: the KyivPrime ON interest rate rose 8bp to 11.25% while KyivPrime 1M interest rate was up 33bp to 17.00%. Investment implications: Although the NBU increased its ON loans by UAH0.69bn, decreased CDs outstanding by UAH0.17 and purchased UAH1.50bn of recently issued bonds for its portfolio, these inflows did not prevent liquidity from falling.