Liquidity reallocated to CDs

Обзор облигаций 26.01.2016 This week began with a liquidity increase of a slight UAH0.39bn to UAH119.20bn and a significant reallocation of funds from banks' accounts to CDs. Banks' correspondent accounts with the NBU fell UAH3.34bn to UAH40.02bn yesterday while total CDs outstanding was up UAH3.73bn to UAH79.18bn. Investment implications: Liquidity remained steady with little volatility, staying slightly below UAH120bn over the last few days while liquidity has been continually reallocated between banks' accounts and CDs, most likely to purchase FX. At the end of this week liquidity should decline due to outflows to the budget.