ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Mar Qtr 2012	Jun Qtr 2012	Jun Qtr 2012	Jun Qtr 2012
		$b	$b	$b	$b
Currency and deposits
	Currency	57.2	0.4	-	57.5
	Transferable deposits	579.7	14.0	-0.3	593.3
	Other deposits	1 092.2	28.3	1.6	1 122.0
Short term debt securities
	Bills of exchange	124.0	-1.2	-0.2	122.6
	One name paper	347.8	-0.7	-0.1	347.0
Long term debt securities
	Bonds, etc.	1 626.9	-23.2	37.5	1 641.2
Derivatives
	Derivatives	319.1	-9.0	85.1	395.1
Loans and placements
	Short term	319.8	-2.9	0.5	317.4
	Long term	2 439.1	42.9	7.1	2 489.0
Shares and other equity
	Listed	1 244.8	11.6	-93.7	1 162.7
	Unlisted	1 791.8	17.9	-22.4	1 787.3
Insurance technical reserves
	Reserves of pension funds and life offices	1 425.6	44.8	-41.8	1 428.6
	General insurance prepayments and reserves	91.4	4.3	-	95.7
- nil or rounded to zero (including null cells)

Currency liabilities increased to $57.5b at the end of June 2012, following transactions of $0.4b during the quarter compared with transactions of -$2.6b for March 2012. Deposit liabilities increased to $1,715.3b at the end of June 2012, following transactions of $42.3b during the quarter compared with the transactions of $3.5b in the previous quarter. The major contributor was the banks which accepted $51.9b. This was partially offset by central bank which decreased by $7.0b.

Short term debt security liabilities decreased to $469.6b at the end of June 2012, following a transaction of -$1.9b. Total long term debt security liabilities increased to $1,641.2b at the end of June 2012, following net redemptions of $23.2b during the quarter. Securitisers had bond redemptions worth $13.3b, of which $12.5b was redeemed domestically and $0.8b redeemed offshore. Rest of world had bond redemptions worth $13.2b, of which $3.7b was redeemed domestically and $9.5b redeemed offshore. Banks had bond redemptions worth $4.0b, of which $4.4b was redeemed offshore and this was partly offset by $0.4b of domestic bond issuance. Other private non-financial corporations issued bonds worth $3.2b, of which $0.6b were issued domestically and $2.6b were issued offshore. National general government issued bonds worth $2.6b, all of which was issued in the domestic market. Total long term debt security net redemptions were offset by a valuation increase of $37.5b.

The value of derivative contracts on issue at the end of June 2012 increased by $76.0b to $395.1b. There were net settlements of $9.0b for the quarter of which the major contributors were banks of $2.6b and rest of world of $2.0b. This was offset by valuation increases of $85.1b.

Loan liabilities rose to $2,806.4b at the end of June 2012, following transactions of $40.0b during the quarter. Households borrowed $20.2b, state and local general government borrowed $13.5b, and other private non-financial corporations borrowed $10.6b.

The listed share market decreased by $82.1b to $1,162.7b at the end of June 2012, with net issuances of $11.6b and valuation decreases of $93.7b. The major contributors to the issuances was other private non-financial corporations which issued $10.5b. The value of the unlisted share market decreased by $4.5b to $1,787.3b at the end of June 2012, with net issuance of $17.9b and valuation decreases of $22.4b. The major contributors of the issuance were non-money market investment funds which issued $11.9b and other private non-financial corporations which issued $3.6b.

At the end of June 2012, the insurance technical reserves of life offices and pension funds were $1,428.6b following transactions during the quarter of $44.8b and valuation decreases of $41.8b. General insurance prepayments and reserves were $95.7b.