ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Mar Qtr 2011	Jun Qtr 2011	Jun Qtr 2011	Jun Qtr 2011
		$b	$b	$b	$b
Currency and deposits
	Currency	53.7	0.4	-	54.0
	Transferable deposits	539.3	13.5	0.6	553.4
	Other deposits	1 061.3	18.7	-6.4	1 073.6
Short term debt securities
	Bills of exchange	129.6	-2.2	-	127.4
	One name paper	334.5	6.5	0.6	341.7
Long term debt securities
	Bonds, etc.	1 459.0	10.3	1.7	1 471.0
Derivatives
	Derivatives	322.9	-47.0	28.1	303.9
Loans and placements
	Short term	284.1	20.9	-1.4	303.7
	Long term	2 298.9	53.6	-11.8	2 340.7
Shares and other equity
	Listed	1 415.3	11.2	-94.9	1 331.6
	Unlisted	1 485.0	13.3	-26.0	1 472.3
Insurance technical reserves
	Reserves of pension funds and life offices	1 280.5	17.4	-38.7	1 259.2
	General insurance prepayments and reserves	84.3	1.7	-	86.0
- nil or rounded to zero (including null cells)

Currency liabilities increased to $54.0b at the end of June 2011, following transactions of $0.4b during the quarter compared with transactions of -$3.3b for March 2011. Deposit liabilities increased to $1,627.0b at the end of June 2011, following transactions of $32.2b during the quarter compared with the transactions of $47.5b in the previous quarter. The major contributor was banks which accepted $34.2b. This was offset by Other depository corporations which fell by -$11.9b.

Short term debt security liabilities increased to $469.1b at the end of June 2011, following net issuances of $4.3b. Total long term debt security liabilities increased to $1,471.0b at the end of June 2011, following net issuance of $10.3b during the quarter. Other Private Non-Financial Corporations issued bonds worth $6.2b, of which $0.8b of domestic bonds matured and $7.0b was issued offshore. National general government issued bonds worth $5.6b, of which $5.5b was issued in the domestic market. Banks had a net issuance of $2.8b, of which $3.7b was issued domestically and $0.9b of offshore bonds matured. Private Non-Financial Investment Funds redeemed bonds worth $3.9b, of which $0.1b of domestic bonds was issued and $4.0b of offshore bonds matured.

The value of derivative contracts on issue at the end of June 2011 decreased by $19.0b to $303.9b. The major component of this decrease were net settlements of $47.0b for the quarter of which the major contributors were banks of $21.4b and Rest of world of $11.8b. This was offset by valuation increases of $28.0b.

Loan liabilities rose to $2,644.4b at the end of June 2011, following transactions of $74.5b during the quarter. Households borrowed $27.6b, rest of world borrowed $13.7b, state and local general government borrowed $10.9b, other private non-financial corporations borrowed $7.7b, and banks borrowed $6.9b. The major offset to these increases was by other financial corporations repaying $1.7b of their liabilities.

The listed share market decreased by $83.7b to $1,331.6b at the end of June 2011, with net issuance of $11.2b and valuation decrease of $94.9b. The major contributors to the issuance were other private non-financial corporations which issued $10.5b and life insurance corporations which had redemptions of $1.7b. The value of the unlisted share market decreased by $12.7b to $1,472.3b at the end of June 2011, with net issuance of $13.3b and valuation decreases of $26.0b. Rest of the world issued $10.9b and life insurance corporations issued $1.8b. Non money market investment funds and money market investment funds bought back $0.6b and $0.4b respectively during the quarter.

At the end of June 2011, the insurance technical reserves of life offices and pension funds were $1,259.1b following transactions during the quarter of $17.3b and valuation decreases of $38.7b. General insurance prepayments and reserves were $86.0b.