Liquidity declines despite support

Обзор облигаций 25.05.2015 Broader banking sector liquidity declined a mere UAH0.25bn to UAH59.66bn last Friday as banks' correspondent accounts with the NBU fell UAH0.47bn to UAH24.30bn while CDs outstanding rose UAH0.22bn to UAH31.03bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH4.33bn. KyivPrime interest rates remained steady with the KyivPrime ON rate at 21.00% and the KyivPrime 1M rate at 27.80%. Investment implications: The NBU purchased UAH0.50bn of government bonds as banks repaid UAH0.15bn of ON loans and purchased UAH0.22bn of new CDs. Last Thursday's cash flows resulted in mostly a reallocation of funds and a slight decline. With month-end tax payments scheduled this week, downward pressure is expected at the end of this week.