ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Dec Qtr 2009	Mar Qtr 2010	Mar Qtr 2010	Mar Qtr 2010
		$b	$b	$b	$b
Currency and deposits
	Currency	55.2	-1.8	-	53.5
	Transferable deposits	419.4	-4.8	-0.3	414.3
	Other deposits	971.9	17.8	-8.9	980.8
Short term debt securities
	Bills of exchange	146.3	-3.2	-	143.0
	One name paper	363.1	-17.6	-0.8	344.7
Long term debt securities
	Bonds, etc.	1 364.1	52.8	-26.4	1 390.5
Derivatives
	Derivatives	252.7	-27.4	40.3	265.7
Loans and placements
	Short term	291.5	-8.9	-4.2	278.4
	Long term	2 163.5	15.3	-0.4	2 178.5
Shares and other equity
	Listed	1 377.9	5.4	0.8	1 384.1
	Unlisted	1 270.8	16.6	11.7	1 299.0
Insurance technical reserves
	Reserves of pension funds and life offices	1 178.2	22.4	2.1	1 202.6
	General insurance prepayments and reserves	74.1	0.9	-	75.0
- nil or rounded to zero (including null cells)

Currency liabilities decreased to $53.5b at the end of March 2010, following transactions of -$1.8b during the quarter compared with transactions of $2.9b for December 2009. Deposit liabilities increased to $1395.1b at the end of March 2010, following transactions of $13.0b during the quarter compared with the transactions of $7.8b in the previous quarter. The major contributor was banks which accepted $22.7b. This was offset by withdrawals from other depository corporations of $9.9b.

Short term debt security liabilities decreased to $487.7b at the end of March 2010, following net redemptions of $20.8b. Total long term debt security liabilities increased to $1390.5b at the end of March 2010, following net issuance of $52.8b during the quarter. Rest of world issued bonds worth $16.6b, of which $12.3b was issued in the domestic market and $4.2b issued offshore. National general government had net issuance of $14.9b, all of which was issued in the domestic market. Banks issued bonds worth net $13.6b, of which $20.1b was issued offshore and there were $6.6b of maturities in the domestic market. Central borrowing authorites had net issuance of $9.8b, of which $10.5b was issued domestically and there were $0.8b of maturities offshore. These increases were partially offset by securitisers which had net maturities of $6.4b of which $3.1b was in the domestic market and $3.3b offshore.

The value of derivative contracts on issue at the end of March 2010 increased by $13.0b to $265.7b. The major component of this increase were valuation increases of $40.4b. This was offset by net settlements which was $27.4b for the quarter of which the major contributors were rest of world $11.7b and banks $8.5b.

Loan liabilities rose to $2456.9b at the end of March 2010, following transactions of $6.4b during the quarter. Households borrowed $22.1b and state and local general government borrowed $5.7b. The major offset to these increases was by other private non-financial corporations repaying $11.1b and banks repaying $10.5b.

The listed share market increased by $6.2b to $1384.1b at the end of March 2010, with net issuance of $5.4b and valuation increases of $0.8b. The major contributor were other private non-financial corporations which issued $4.6b. The value of the unlisted share market increased by $28.2b to $1299.0b at the end of March 2010, with net issuance of $16.6b and valuation increases of $11.6b. Rest of world issued $9.7b and other private non-financial corporations issued $4.8b during the quarter.

At the end of March 2010, the insurance technical reserves of life offices and pension funds were $1208.5b following transactions during the quarter of $22.3b and valuation increases $1.6b. General insurance prepayments and reserves were $75.0b.