Liquidity declines slightly

Обзор облигаций 30.12.2014 Last Friday's cash flows caused a slight decline in liquidity yesterday. The NBU absorbed UAH0.88bn of liquidity as it increased total CDs outstanding by UAH0.88bn to UAH17.00bn. However, the NBU last Friday decreased ON loans by UAH0.10bn to UAH0.53bn while total local currency debt repayments scheduled for the next 30 days rose UAH0.53bn to UAH3.56bn. At the same time, banks' correspondent accounts with the NBU fell UAH2.04bn to UAH34.59bn, causing broader banking sector liquidity to decline UAH0.62bn to UAH54.68bn yesterday. KyivPrime interest rates significantly rose yesterday: the KyivPrime ON interest rate rose 115bp to 17.75% while the KyivPrime 1M interest rate rose 35bp to 19.75%.