Liquidity slight recovery

Обзор облигаций 25.12.2014 Banking sector liquidity slightly recovered yesterday with no support from the NBU or the MoF. Broader banking sector liquidity rose UAH0.77bn to UAH54.06bn due to a UAH0.35bn increase in banks' correspondent accounts with the NBU to UAH33.17bn and a UAH0.42bb rise in total CDs outstanding to UAH16.99bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH3.87bn. KyivPrime interest rates slightly diverged: the KyivPrime ON interest rate declined 38bp to 16.50% while the KyivPrime 1M interest rate rose 5bp to 19.30%. Investment implications: There could be an injection from the NBU via bond purchases, but the NBU did not publish data on bondholders' portfolios yesterday morning. This increase was insignificant and could be reduced by month-end tax payments or other outflows.