Liquidity declines

Обзор облигаций 01.09.2015 Last week's month-end tax payments caused banking sector liquidity to fall significantly yesterday, down UAH1.84bn to UAH68.48bn, while for the first time since the beginning of the month that it fell below UAH70.0bn. Banks' correspondent accounts with the NBU rose UAH1.01bn to UAH23.49bn while total CDs outstanding fell UAH2.86bn to UAH44.99bn. Investment implications: Yesterday's liquidity indicators reflect all of last Friday's cash-flows and the last day of month-end tax payments. Today, the Ukrainian Treasury should report the cash balance at the MoF's accounts in local currency, which most likely should be at a high level, as seen in recent months. At the same time, banks' liquidity could begin to recover due to new budget expenditures.