Liquidity declines with reallocations

Обзор облигаций 09.09.2015 As anticipated following Monday's outflows, liquidity declined UAH0.67bn to UAH70.56bn yesterday as total CDs outstanding fell UAH1.63bn to UAH45.89bn while banks' correspondent accounts with the NBU rose UAH0.96bn to UAH24.67bn. Investment implications: The NBU repaid about UAH10.20bn in CD redemptions on Monday while it concurrently sold only UAH8.55bn of new CDs. As a result, these funds were used by banks and their clients with partial funds allocated to banks' accounts. As this decline is routine at the beginning of every month, liquidity could fall further today and then recover at the end of this week.