ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Jun Qtr 2011	Sep Qtr 2011	Sep Qtr 2011	Sep Qtr 2011
		$b	$b	$b	$b
Currency and deposits
	Currency	54.0	1.8	-	55.9
	Transferable deposits	550.0	15.1	-	565.1
	Other deposits	1 072.6	36.3	13.4	1 122.3
Short term debt securities
	Bills of exchange	127.4	-1.3	-	126.1
	One name paper	340.8	-	7.1	347.9
Long term debt securities
	Bonds, etc.	1 467.6	20.3	75.7	1 563.5
Derivatives
	Derivatives	305.5	15.5	81.0	401.9
Loans and placements
	Short term	320.2	12.9	6.4	339.5
	Long term	2 326.0	48.7	2.4	2 377.1
Shares and other equity
	Listed	1 331.6	8.8	-178.2	1 162.2
	Unlisted	1 476.3	5.0	-89.9	1 391.4
Insurance technical reserves
	Reserves of pension funds and life offices	1 257.0	18.6	-87.2	1 188.5
	General insurance prepayments and reserves	87.5	3.6	-	91.0
- nil or rounded to zero (including null cells)

Currency liabilities increased to $55.9b at the end of September 2011, following transactions of $1.8b during the quarter compared with transactions of $0.4b for June 2011. Deposit liabilities increased to $1,687.4b at the end of September 2011, following transactions of $51.4b during the quarter compared with the transactions of $36.1b in the previous quarter. The major contributor was banks which accepted $57.7b. This was offset by Central Bank which fell by $6.8b.

Short term debt security liabilities increased to $474.0b at the end of September 2011, following maturities of $1.3b. Total long term debt security liabilities increased to $1,563.5b at the end of September 2011, following net issuance of $20.3b during the quarter. National General Government issued bonds worth $19.2b, of which $19.3b was issued in the domestic market with $0.1b of offshore bonds maturing. Central Borrowing Authorities issued bonds worth $11.5b, of which $11.7b was issued in the domestic market with $0.2b of offshore bonds maturing. Securitisers had a net issuance of $7.9b, of which $8.9b was issued domestically and $0.9b of offshore bonds matured. Rest of World redeemed bonds worth $14.1b, of which $3.5b was redeemed domestically and $10.6 of offshore bonds matured. Other private non-financial corporations redeemed bonds worth $3.7b, of which $0.2b of domestic bonds was issued and $3.8b of offshore bonds matured.

The value of derivative contracts on issue at the end of September 2011 increased by $96.4b to $401.9b. The major component of this increase was valuation increases of $80.9b. Net issuance accounted for $15.5b of which the major contributors were other depository corporations with $6.8b and banks with $5.7b.

Loan liabilities rose to $2,716.6b at the end of September 2011, following transactions of $61.6b during the quarter. Rest of the world borrowed $19.5b, other private non-financial corporations borrowed $18.0b, households borrowed $14.3b, state and local general government borrowed $11.3b, and banks borrowed $3.3b. The major offset to these increases was by central borrowing authorities repaying $2.3b of their liabilities.

The listed share market decreased by $169.4b to $1,162.2b at the end of September 2011, with net issuance of $8.8b and valuation decreases of $178.2b. The major contributors to the issuance were other private non-financial corporations which issued $5.0b and banks which issued of $1.9b. The value of the unlisted share market decreased by $84.9b to $1,391.4b at the end of September 2011, with net issuance of $5.0b and valuation decreases of $89.9b. Rest of the world issued $7.7b and other private non-financial corporations issued $1.6b. Non money market investment funds bought back $6.0b during the quarter.

At the end of September 2011, the insurance technical reserves of life offices and pension funds were $1,188.5b following transactions during the quarter of $18.6b and valuation decreases of $87.2b. General insurance prepayments and reserves were $91.0b.