Liquidity slightly reallocated

Обзор облигаций 08.09.2015 The NBU sold UAH12.98bn of new CDs while it repaid UAH13.26bn in CD redemptions the same day, causing CDs outstanding to decline UAH0.25bn to UAH47.52bn yesterday. At the same time, banks' correspondent accounts with the NBU rose UAH0.15bn to UAH23.72bn. As a result, banking sector liquidity slid a mere UAH0.10bn to UAH71.23bn. Investment implications: Although CDs outstanding slid only slightly, the share of CDs maturing in two weeks or longer rose from 25.77% to 27.32% as the NBU sold UAH2.61bn of 14-day CDs last Friday. This could indicate that banks are not going to see a lack of liquidity this week and prefer 2-week CDs over ON or 7-day CDs. At the same time, we could see a slight decline in liquidity this week due to Naftogaz payments and FX purchasing at the market or directly from the NBU.