FINANCIAL MARKET SUMMARY

SELECTED FINANCIAL INSTRUMENTS

		Outstanding at end		Transactions during		Other changes during		Outstanding at end
		Dec Qtr 2017		Mar Qtr 2018		Mar Qtr 2018		Mar Qtr 2018
		$b		$b		$b		$b
Currency and deposits
	Currency	82.2		-1.8		-		80.4
	Transferable deposits	870.6		7.6		1.3		879.5
	Other deposits	1 615.3		-2.5		6.3		1 619.1
Short term debt securities
	Bills of exchange	42.1		-2.8		-		39.3
	One name paper	471.4		24.0		8.7		504.1
Long term debt securities
	Bonds, etc.	2 440.2		48.0		8.4		2 496.6
Derivatives
	Derivatives	402.4		-52.1		77.4		427.7
Loans and placements
	Short term	335.1		15.9		1.6		352.5
	Long term	3 634.2		47.3		1.0		3 682.4
Shares and other equity
	Listed	1 911.3		8.0		-92.3		1 826.9
	Unlisted	4 136.9		32.8		16.7		4 186.4
Insurance technical reserves
	Reserves of pension funds and life offices	2 421.7		32.5		-44.6		2 409.7
	General insurance prepayments and reserves	108.5		0.8		-		109.3
- nil or rounded to zero (including null cells)

The listed shares market decreased $84.3b in March quarter 2018, with net transactions of $8.0b and a valuation decrease of $92.3b. Total valuation decreases were driven by other private non-financial corporations shares down $40.6b and bank shares down $30.9b. This is the largest negative growth seen in the listed shares market since September quarter 2015.

The loans and placements market increased $65.6b in March quarter 2018, with net transactions of $63.2b and revaluations of $2.6b. Growth in long term lending to households was slower this quarter at 1.5%, compared to last quarter's growth of 1.7%. Despite this slower growth long term loans to households were the main driver of net transactions in the loans and placements market. Long term loans to other private non-financial corporations and short term loans to the rest of world also contributed to the overall growth in the loans and placements market this quarter.

Bonds increased $56.4b, with net issuance of $48.0b and revaluations of $8.4b in March quarter 2018. Net transactions were driven by net issuance of $23.6b in the domestic market and $24.4b in the offshore market. While positive revaluations were observed in both markets, the offshore market was larger due to the Australian dollar depreciating against most major currencies over the quarter.

Total deposits increased $12.7b in March quarter 2018, with net transactions of $5.1b and a valuation increase of $7.6b. The increase in total deposits was driven by growth in both transferable deposits (1.0%) and other deposits (0.2%). Households' deposits grew by 1.1%. Deposits with the rest of world were the main driver of transactions in both deposit markets this quarter.