Liquidity recovers with reallocation

Обзор облигаций 08.06.2016 Banking sector liquidity was up UAH1.47bn to UAH95.66bn yesterday, including a significant reallocation of funds to CDs. Banks' correspondent accounts with the NBU fell UAH2.98bn to UAH32.62bn as total CDs outstanding increased UAH4.45bn to UAH63.05bn. Investment implications: Liquidity recovered UAH0.9bn from the NBU via the FX market and should continue to increase further. The NBU (via FX auction) purchased US$57.3m at UAH24.97/USD exchange rate yesterday, and the settlement of yesterday's primary auction should have little impact on liquidity. At the end of week, liquidity could rise to about UAH98bn.