ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Mar Qtr 2010	Jun Qtr 2010	Jun Qtr 2010	Jun Qtr 2010
		$b	$b	$b	$b
Currency and deposits
	Currency	53.5	-0.8	-	52.7
	Transferable deposits	415.0	12.8	1.1	429.0
	Other deposits	994.4	20.4	5.8	1 020.6
Short term debt securities
	Bills of exchange	143.0	-3.5	-	139.5
	One name paper	340.8	-0.7	1.6	341.6
Long term debt securities
	Bonds, etc.	1 393.7	13.5	38.4	1 445.6
Derivatives
	Derivatives	308.3	-12.6	45.7	341.4
Loans and placements
	Short term	276.3	2.1	2.7	281.1
	Long term	2 184.2	27.9	4.5	2 216.7
Shares and other equity
	Listed	1 384.1	9.3	-165.3	1 228.1
	Unlisted	1 325.9	17.8	-59.8	1 283.9
Insurance technical reserves
	Reserves of pension funds and life offices	1 183.1	30.9	-70.3	1 143.7
	General insurance prepayments and reserves	75.0	2.6	-	77.6
- nil or rounded to zero (including null cells)

Currency liabilities decreased to $52.7b at the end of June 2010, following transactions of -$0.8b during the quarter compared with transactions of -$1.7b for March 2010. Deposit liabilities increased to $1,449.6b at the end of June 2010, following transactions of $33.2b during the quarter compared with the transactions of $16.1b in the previous quarter. The major contributor was banks which accepted $30.7b. This was slightly offset by withdrawals from other depository corporations of $0.1b.

Short term debt security liabilities decreased to $481.1b at the end of June 2010, following net redemptions of $4.2b. Total long term debt security liabilities increased to $1,445.6b at the end of June 2010, following net issuance of $13.5b during the quarter. National general government issued bonds worth $16.0b, of which $15.9b was issued in the domestic market and $0.1b issued offshore. Banks had net issuance of $9.0b, all of which was issued in the domestic market. Central borrowing authorities issued bonds worth $7.0b, of which $7.3b was issued domestically and there were $0.3b of maturities offshore. These increases were partially offset by securitisers which had net maturities of $17.9b of which $14.2b was in the domestic market and $3.8b offshore.

The value of derivative contracts on issue at the end of June 2010 increased by $33.1b to $341.4b. The major component of this increase were valuation increases of $45.7b. This was offset by net settlements which was $12.6b for the quarter of which the major contributors were banks of $6.6b and other depository corporations of $2.0b.

Loan liabilities rose to $2,497.8b at the end of June 2010, following transactions of $30.0b during the quarter. Households borrowed $28.6b, state and local general government borrowed $4.5b and state and local public non-financial corporations borrowed $4.6b. The major offset to these increases was by other private non-financial corporations repaying $8.6b and banks repaying $4.8b.

The listed share market decreased by $156.0b to $1,228.1b at the end of June 2010, with net issuance of $9.3b and valuation decreases of $165.3b. The major contributor were other private non-financial corporations which issued $6.7b. The value of the unlisted share market decreased by $42.0b to $1,283.9b at the end of June 2010, with net issuance of $17.8b and valuation decreases of $59.8b. Other private non-financial corporations issued $7.7b and non-money market investment funds issued $7.1b during the quarter.

At the end of June 2010, the insurance technical reserves of life offices and pension funds were $1,141.7b following transactions during the quarter of $30.9b and valuation decreases $70.4b. General insurance prepayments and reserves were $77.6b.