Liquidity rose above UAH52bn

Обзор облигаций 15.12.2014 Broader banking sector liquidity rose UAH2.52bn to UAH52.25bn last friday, including banks' correspondent accounts with the NBU increase UAH2.45bn to UAH333.85bn total CDs outstanding increase UAH0.07bn to UAH13.42bn, while total debt repayments scheduled for the next 30 days remained steady at UAH4.99bn. KyivPrime interest rates slightly rose last Friday: the KyivPrime ON interest rate rose 50bp to 15.75% while KyivPrime 1M interest rate rose 25bp to 19.00%. Investment implications: The NBU made insufficient injections in liquidity, issued additional UAH0.45bn of ON loans last Thursday. At the same time, purchased UAH1.5bn of new government bonds the NBU just compensated for banks funds spent at primary auction last Thursday. So, liquidity increase was not supported by the NBU, but markets were not satisfied and interest rates continued increase last Friday. This week liquidity will not have significant pressure, but for the next week month-end tax payments are scheduled, which could cause significant decline in liquidity.