June 21, 2016 | Cbonds
|Prior the extended weekend and month-end tax payments, liquidity recovered to slightly above UAH100bn but should decline significantly at the end of the month. Banking sector liquidity rose UAH1.34bn last Friday to UAH102.29bn as banks correspondent accounts with the NBU slid a mere UAH0.19bn to UAH40.60bn. Total CDs outstanding rose UAH1.53bn to UAH61.69bn.|
Investment implications: The recovery in liquidity most likely was supported by the NBU's injections via the FX market as well as month-end tax payments scheduled for this week. Although this week could start with an increase in liquidity, we anticipate that it will decline.