Yesterday, overnight rates held in the area of 6.50%, but demand for the CBR’s standing refinancing facilities subsided. Hence, banks secured only RUB 69bn at the one-day repo auction, down from RUB 266bn the day before. Also, the fixed-rate repo narrowed to RUB 13bn from RUB 88bn on Wednesday. Yesterday, RUB 135bn of pension money (from both VEB and the State Pension Fund) was deposited in banks, which helped ease the banking liquidity situation. In addition, it looks as though the budget has also injected some liquidity during the last two days, though today companies are paying corporate profit tax. Separately, the Treasury conducted a RUB 70bn one-month deposit auction. Demand was RUB 105bn, with the average rate set at 6.10%, i.e. at the minimum threshold. However, the auction was simply a rollover of maturing deposits.
Finally, the CBR has announced its offer limit for another 312-P auction, scheduled for 6 March. The central bank is again to offer RUB 200bn for three-months, which is marginally negative news for liquidity, because some RUB 237bn of 312-P debt matures during the next 30 days, according to CBR data. Therefore, unless banks refinance these debts again with the help of standing 312-P instruments, where rate is 7.25% vs. 5.75% in auction, March’s 312-P auction would not bring any relief in terms of liquidity – especially in light of the ongoing FX interventions.