Liquidity reallocated

Обзор облигаций 24.12.2014 Broader banking sector liquidity rose UAH0.95bn to UAH53.29bn yesterday, mostly due to a UAh0.84bn increase in total local currency debt repayments scheduled for the next 30 days to UAH3.87bn. Banks' correspondent accounts with the NBU fell UAH1.51bn to UAH32.82bn while total CDs outstanding rose UAH1.62bn to UAH16.57bn. KyivPrime interest rates slightly diverged: the KyivPrime ON interest rate slid 12bp to 16.88% while the KyivPrime 1M interest rate rose 25bp to 19.25%. Investment implications: The NBU's further decrease of ON loans had no impact on liquidity. As a result, liquidity was reallocated from banks' correspondent accounts with the NBU to CDs.