Liquidity reallocated slightly

Обзор облигаций 21.01.2015 The NBU continued to absorb extra liquidity from banks as it increased its CDs outstanding by UAH0.49 yesterday to this year's record high of UAH22.25bn last seen in October. As a result, banks' correspondent accounts with the NBU declined a slight UAH0.55bn to UAH36.31bn while total local currency debt repayments scheduled for the next 30 days rose UAH1.33bn to UAH7.21bn. Broader banking sector liquidity increased UAH1.27bn to UAH65.77bn, setting this year's high last seen in October. Investment implications: Although the NBU decreased ON loans by UAH0.16bn and refinanced only UAH0.10bn yesterday, it withheld support and purchased no government bonds on Monday. As month-end tax payments begin this week, liquidity could decline slightly if the NBU provides no support. As the MoF is scheduled to repay UAH0.84bn in debt repayments, early tax payments could cover some outflows as yesterday's failed primary auction provided no proceeds.