Liquidity increases slightly

Обзор облигаций 17.12.2014 Broader banking sector liquidity rose UAH1.24bn to UAH53.43bn yesterday as a result of a UAH0.70bn increase in total local currency debt repayments scheduled for the next 30 days to UAH5.69bn and additional inflows from the NBU. Meanwhile, banks' correspondent accounts with the NBU declined UAH0.80bn to UAH34.53bn and total CDs outstanding rose UAH1.34bn to UAH13.21bn. KyivPrime interest rates slightly rose: the KyivPrime ON interest rate rose 65bp to 16.25% while the KyivPrime 1M interest rate rose 15bp to 19.25%. Investment implications: The NBU decreased ON loans by UAH0.66bn and increased the volume of CDs outstanding. At the same time, the NBU purchased UAH1.00bn of bonds from the banks' portfolio, covering outflows from the state budget to primary market bond purchases.