Liquidity reallocates

Обзор облигаций 03.02.2015 Broader banking sector liquidity slightly declined yesterday, after last Friday was the last day of month-end tax payments. Broader indicator declined UAH0.84bn to UAH59.99bn. At the same time, the NBU significantly supported banks with liquidity, increased volume of ON loans and decreased total CDs outstanding. Banks' correspondent accounts with the NBU rose UAH2.55bn to UAH33.87bn while total CDs outstanding fell UAH3.39bn to UAH19.26bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH6.87bn yesterday. KyivPrime interest rates slightly rose yesterday: KyivPrime ON interest rate rose 17bp to 12.00% while KyivPrime 1M interest rate remained steady at 18.67%. Investment implications: With no large inflows due at the end of the month, liquidity could stabilize, and yet we anticipate it to decline as last Friday was the last day for month-end tax payments.