Liquidity recovers insufficiently

Обзор облигаций 24.03.2015 After falling significant last Friday, yesterday's broader liquidity indicator rose UAH0.34bn to UAH60.68bn as banks' correspondent accounts with the NBU rose UAH0.61bn to UAH31.20bn while total CDs outstanding slid UAH0.27bn to UAH19.29bn. Total local currency debt repayments scheduled for the next 30 days remained steady. KyivPrime interest rates slightly diverged: the KyivPrime ON interest rate rose 50bp to 22.50% while the KyivPrime 1M interest rate slid 8bp to 27.80%. Investment implications: As the NBU provided little support for liquidity last Friday, the liquidity recovery yesterday was insufficient. Any large tax payments that should have occurred last Friday most likely were postponed to the end of this week or next Monday. While we could see a slight increase in the broader indicator today, debt repayments and month-end tax payments should prevent liquidity from rising significantly this week.