Liquidity significant reallocation sets new record high

Обзор облигаций 24.06.2015 Broader banking sector liquidity rose UAH0.13bn to UAH68.73bn as a significant volume of funds were reallocated from banks' correspondent accounts with the NBU to CDs. The NBU's absorption resulted in a new record high of CDs outstanding, up UAH2.39bn to UAH40.43bn yesterday, the largest volume since 2011. At the same time, banks' correspondent accounts with the NBU fell UAH3.11bn to UA23.04bn while total debt repayment scheduled for the next 30 days rose UAH0.86bn to UAH5.26bn. Investment implications: The NBU continued to absorb extra liquidity from the market to tighten demand for FX. Although CDs outstanding set a new historical record high, the volume was mostly concentrated in ON CDs prior to month-end tax payments.