FINANCIAL MARKET SUMMARY

SELECTED FINANCIAL INSTRUMENTS

		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Jun Qtr 2017	Sep Qtr 2017	Sep Qtr 2017	Sep Qtr 2017
		$b	$b	$b	$b
Currency and deposits
	Currency	77.6	1.2	-	78.8
	Transferable deposits	854.8	5.1	-0.8	859.1
	Other deposits	1 602.6	-25.0	-0.3	1 577.3
Short term debt securities
	Bills of exchange	48.4	-3.5	-	44.9
	One name paper	483.7	3.8	-3.6	483.8
Long term debt securities
	Bonds, etc.	2 386.7	-15.4	3.6	2 374.8
Derivatives
	Derivatives	447.1	-66.9	6.5	386.7
Loans and placements
	Short term	328.7	-6.3	-1.4	321.0
	Long term	3 569.3	17.6	-2.2	3 584.7
Shares and other equity
	Listed	1 757.5	13.9	-8.3	1 763.1
	Unlisted	3 940.8	62.8	15.5	4 019.0
Insurance technical reserves
	Reserves of pension funds and life offices	2 464.3	27.5	-5.5	2 486.3
	General insurance prepayments and reserves	107.4	2.9	-	110.2
- nil or rounded to zero (including null cells)

Total deposits decreased $21.0b in September quarter 2017, with net transactions of -$19.9b and a valuation decrease of $1.1b. This is the first decrease in deposits since December quarter 2011 and is driven by transactions in other deposits of -$25.0b. The main contributor to this decrease were deposits accepted by the central bank (-$25.1b). Deposits accepted by banks ($5.3b) and other depository corporations ($2.6b) were the main contributors to the $5.1b transaction in transferable deposits.

Bonds decreased $11.9b, with a net maturity of $15.4b and revaluations of $3.6b in September quarter 2017. Net transactions were driven by a net maturity of $11.8b in the offshore market and $3.6b in the domestic market. Positive revaluations were observed in the offshore market, driven primarily by the Australian dollar depreciating against some major currencies over the quarter. Bonds issued offshore by the rest of the world were the main driver for the revaluation increase ($5.7b).

The loans and placement market increased $7.7b in September quarter 2017, with net transactions of $11.3b and revaluations of -$3.6b. Net transactions during September quarter 2017 were driven by long term loans, with lending to households ($16.6b) and other private non-financial corporations ($3.1b) partially offset by loan repayments from the rest of world (-$5.0b). Short term loan transactions were driven by repayments from the rest of world (-$5.9b).

The listed share market increased 0.3% in September quarter 2017, with net transactions of $13.9b and a valuation decrease of $8.3b. The largest valuation decreases were recorded by shares issued by non-life insurance corporations ($5.5b), life insurance corporations ($1.6b), other financial corporations ($1.3b), and banks ($1.2b).