New decline in liquidity

Обзор облигаций 09.04.2015 Banks' correspondent accounts with the NBU declined to this year's record low, falling UAH2.90bn yesterday to UAH22.26bn. However, total CDs outstanding rose a mere UAH0.02bn to UAH17.49bn and total local currency debt repayments scheduled for the next 30 days remained steady at UAH11.23bn. As a result, broader banking sector liquidity fell UAH2.89bn to UAH50.98bn. KyivPrime interest rates slightly diverged: the KyivPrime ON interest rate rose 10bp to 23.30% while the KyivPrime 1M interest rate remained steady at 28.00%. Investment implications: Although the NBU absorbed about UAH0.82bn yesterday via the redemption of loans issued earlier to banks, the decline in liquidity falling was significantly larger due FX trading on Tuesday increase UAH0.05bn to US$0.21m, and likely portion of stabilisation loans repaid by local banks.