July 14, 2016 | Cbonds
|VAT refunds that were added to liquidity were mostly invested in CDs, as total CDs outstanding rose UAH3.57bn over the lat two days while banks' correspondent accounts with the NBU declined UAH2.99bn. As a result, banking sector liquidity stayed near UAH100bn. Yesterday, it declined UAH0.36bn to UAH99.44bn as banks' correspondent accounts with the NBU fell UAH2.70bn to UAH39.62bn while total CDs outstanding rose UAH2.34bn to UAH59.82bn.|
Investment implications: Liquidity remained steady, slightly below UAH100bn, and probably could decline today as the result of yesterday's settlement of new government bonds and the UAH1.16bn budget payment. Without NBU loans and an FX auction, liquidity is unlikely to rise above UAH100bn.