FINANCIAL MARKET SUMMARY

SELECTED FINANCIAL INSTRUMENTS

		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Sep Qtr 2017	Dec Qtr 2017	Dec Qtr 2017	Dec Qtr 2017
		$b	$b	$b	$b
Currency and deposits
	Currency	78.8	3.4	-	82.2
	Transferable deposits	859.4	10.6	0.3	870.3
	Other deposits	1 576.6	37.0	2.2	1 615.8
Short term debt securities
	Bills of exchange	44.9	-2.8	-	42.1
	One name paper	482.4	-12.0	0.6	471.0
Long term debt securities
	Bonds, etc.	2 382.2	40.0	6.2	2 428.4
Derivatives
	Derivatives	386.2	-45.1	53.2	394.3
Loans and placements
	Short term	320.8	11.8	0.5	333.1
	Long term	3 587.6	42.7	0.7	3 631.0
Shares and other equity
	Listed	1 766.5	17.8	127.0	1 911.3
	Unlisted	4 012.8	49.3	72.3	4 134.4
Insurance technical reserves
	Reserves of pension funds and life offices	2 331.2	29.0	59.7	2 419.9
	General insurance prepayments and reserves	108.3	0.2	-	108.5
- nil or rounded to zero (including null cells)

Total deposits increased $50.1b in December quarter 2017, with net transactions of $47.6b and a valuation increase of $2.5b. The increase in total deposits was driven by growth in both other deposits (2.5%) and transferable deposits (1.3%). Household deposits with banks were the main contributor to transactions in transferable deposits, while the main contributors to transactions in other deposits were rest of world deposits with banks and central bank deposits with the rest of world.

Bonds increased $46.2b, with a net issuance of $40.0b and revaluations of $6.2b in December quarter 2017. Net transactions were driven by net issuance of $56.1b in the domestic market and net maturity of $16.1b in the offshore market. Positive revaluations were observed in the offshore market, driven primarily by the Australian dollar depreciating against some major currencies over the quarter.

The loans and placements market increased $55.7b in December quarter 2017, with net transactions of $54.5b and revaluations of $1.2b. Net transactions were driven by long term loans to households and other private non-financial corporations, which were partially offset by loan repayments from the rest of world.

The listed share market increased 8.2% in December quarter 2017, with net transactions of $17.8b and a valuation increase of $127.0b. Other private non-financial corporations shares recorded the largest valuation increase, followed by non-money market financial investment funds, private non-financial investment funds, non-life insurance corporations, and other financial corporations.