Liquidity reallocation and increase

Liquidity reallocation and increase



6 березня 2015 года
ICU

Wednesday's cash flows caused a reallocation of funds between indicators that caused them to rise insufficiently. Banks' correspondent accounts with the NBU fell UAH4.62bn to UAH26.18bn yesterday while total CDs outstanding rose UAH6.55bn to UAH23.16bn and total local currency debt repayments scheduled for the next 30 days declined UAH1.63 to UAH8.38bn. As a result, broader banking sector liquidity rose a slight UAH0.29bn to UAH57.73bn. KyivPrime interest rates diverged: the KyivPrime ON interest rate slid 58bp to 21.17% while the KyivPrime 1M interest rate remained steady at 27.00%.

Investment implications: The NBU slightly decreased its loans to banks on Wednesday after issuing UAH1.50bn in loans, including UAH0.20bn of ON loans and UAH1.30bn with 84-day maturity. 84-days loans, most likely received by banks yesterday, should be included in today's indicators. At the same time, this significant decline in ON loans had no impact on broader liquidity. The MoF repaid UAH1.63bn in local currency debt repayments while the NBU absorbed an additional UAH6.55bn via CDs, causing banks' correspondent accounts to decline. As UAH15.32bn of ON CDs was sold on Wednesday, the volume of CDs could decline through fund reallocations to banks' accounts, but the NBU could have increased the absorption of additional liquidity yesterday, resulting in an additional increase in CDs outstanding.

Источник: ICU

Другие обзоры облигаций от ICU


Компании

все компании