Liquidity reallocation

Обзор облигаций 22.12.2015 Banks' correspondent accounts with the NBU rose UAH1.99bn to UAH33.65bn yesterday, while total CDs outstanding declined UAH2.80bn to UAH67.06bn that day, as the NBU sold only UAH13.64bn of CDs last Friday. This reallocation resulted in a slight UAH0.81bn decline in banking sector liquidity to UAH100.71bn. Investment implications: Liquidity declined slightly yesterday, reflecting last Friday's reallocation of funds. At the same time, liquidity slid prior to month-end tax payments, and could decline through the end of the month amid slight volatility. Extra budget expenditures should have a positive impact on liquidity, preventing a significant decline.