Liquidity continues to recover

Обзор облигаций 26.12.2014 Broader banking sector liquidity rose UAH0.92bn to UAH54.98bn yesterday, a new record high of the month. This increase was seen despite the 0.34bn decrease in total local currency debt repayments scheduled for the next 30 days to UAH3.56bn. Banks' correspondent accounts with the NBU rose UAH1.17bn to UAH34.34bn and total CDs outstanding rose UAH0.09bn to UAH17.08bn, KyivPrime interest rates slightly diverged as the KyivPrime ON interest rate remained steady at 16.50% while the KyivPrime 1M interest rate rose 10bp to 19.40%. Investment implications: Yesterday's increase was mostly caused by the NBU, as a regulator which issued UAH1.00bn of 19-day loans to 15 banks, while ON loans fell only UAH0.07bn. As the MoF repaid UAH0.34bn in local currency debt repayments, injections were larger than the liquidity increase.