Liquidity steady

Обзор облигаций 13.10.2015 Banking sector liquidity rose only UAH0.09bn to UAH82.93bn yesterday as banks' correspondent accounts with the NBU were up UAH0.07bn and total CDs outstanding increased UAH0.02bn. These minor movements could be the result of the Naftogaz natural gas payment last Friday and possibly some FX purchasing from the NBU. As a note, the NBU significantly decreased FX purchasing at the auction to US$3.30m last Friday, a paltry amount compared with last week's total FX purchasing volume of US$90.90m. Investment implications: The current situation indicates that liquidity should not decline at the beginning of this month, as Naftogaz most likely purchased FX for its payments mostly at the FX market and not directly from the NBU. This purchasing had little impact on liquidity. Because of this, we could see liquidity hit new record highs this week.