Bank Deposit Slip Forms

Veles Capital – Daily bonds review, Domestic market – Mar 20, 2013.

Domestic market

No change indicated at the money market. Sum remains and
arrearage

 of the bank sector on Tuesday did not change significantly and the
negative value of the net liquidity (difference between the remains of
banks at correspondent accounts and deposits in
CBR

 and the arrearage to
the regulatorand federal budget) remained a bit over the level of 900 bn
RUR. Note, yesterday single banks were probably making preliminary
payments on VAT, resulting from which the indicative interbank rate grew
slightly up (by 3 bps), forming 6.14% annually.

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We should also say that at the deposit auction of the Russian
Treasury yesterday, banks attracted more than half of the assets offered
by the authority Co 64.3 bn RUR. In its turn, at the weekly REPO auction
with CBR banks attracted 1.34 bn RUR, which today the banks are to
return just 1.15 bn RUR on the REPO auction a week ago. In both cases,
the assets reach the market today and that builds up liquidity reserves
of banks. However, despite that, today we might expect pressure on
interbank rates, which is related not to final accounts on VAT, but to
the minimal limit placed on oneCEday auction of direct REPO Co10 bn RUR.

Dollar is
on the verge

 of 31 RUR. Participants of the domestic
currency market continued moving toward the level of 31 RUR vs dollar.
By the end of trade dollar/ruble pair grew 15 kopeksand formed 30.99
RUR. This morning the oil quotes were in the green zone, banks are to
face large tax payments, which allowed ruble to start the day in slight
positive, however, any negative reason from the foreign grounds will
support dollar
fixation
 see psychoanalysis.
 above 31 RUR level.

Sale continued at the domestic market, despite the absence of
negative news within the daytime hours.
BFL

BFL Brothers for Life
BFL Bharat Forge Ltd.
BFL Back Focal Length
 slipped by 5CE10 bps
average, yield grew 3 bps. In the corporate segment, we saw cautious
buying. Slight price adding was on RSHBCE12, CE13, and SystemaCE3.

Wednesday the participants will continue following the news on
Cyprus. Dynamics of the market will depend on the results of the meeting
of the minister of finance Russia.

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