Liquidity up significantly

Обзор облигаций 20.01.2015 Based on last Saturday's (a business day in Ukraine) cash-flows, the significant increase in liquidity was only partially supported by the NBU. Banks' correspondent accounts with the NBU rose UAH3.60bn to UAH36.86bn despite the NBU absorbing some liquidity as total CDs outstanding rose UAH1.13bn to UAH21.76bn. Total local currency debt repayments scheduled for the next 30 days remained steady at UAH5.88bn yesterday. Investment implications: The NBU increased its government bond portfolio by UAH0.73bn on Saturday after it purchased bonds most likely recently issued by the MoF. Although the NBU also issued UAH0.10bn, these inflows were insufficient to cause a significant increase in liquidity. There could be new inflows from the MoF via budget expenditures using last week's borrowings. As some funds could be deposited by tax payers as month-end tax payments begin this week, liquidity could decline, mostly at the end of next week.