Liquidity increased sharply; Primary auction results: friendly demand

Bonds: Liquidity increased sharply
Banks\' correspondent accounts with the NBU sharply rose UAH1.57bn last Thursday to UAH17.91b, resulting in broader banking sector liquidity rising UAH1.29bn to UAH24.61bn. Total NBU CDs outstanding remained steady, but total debt repayments scheduled for the next 30 days declined UAH0.27bn to UAH6.64bn. The NBU slightly supported liquidity last Wednesday when it issued UAH0.17bn of loans, including UAH0.07bn of ON loans to three banks and UAH0.10bn of 13-days loans to nine banks (against bank repayments of UAH0.22bn of ON loans that day). Also the MoF repaid UAH0.27bn in interest repayments additionally to the NBU\'s issuance of UAH0.17bn in repos. KyivPrime interest rates continued to decline last Thursday: the KyivPrime ON interest rate declined 145bp to 24.13% and the KyivPrime 1M interest rate declined 45bp to 26.15%.

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