FINANCIAL MARKET SUMMARY

SELECTED FINANCIAL INSTRUMENTS

		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Mar Qtr 2016	Jun Qtr 2016	Jun Qtr 2016	Jun Qtr 2016
		$b	$b	$b	$b
Currency and deposits
	Currency	75.0	-0.2	-	74.8
	Transferable deposits	738.1	22.5	1.0	761.6
	Other deposits	1 464.8	21.1	7.0	1 492.9
Short term debt securities
	Bills of exchange	66.6	-3.5	-	63.1
	One name paper	435.1	-12.8	5.1	427.5
Long term debt securities
	Bonds, etc.	2 346.7	14.3	36.3	2 397.3
Derivatives
	Derivatives	615.0	-88.1	109.1	636.0
Loans and placements
	Short term	335.6	8.5	2.1	346.2
	Long term	3 391.0	40.9	8.4	3 440.3
Shares and other equity
	Listed	1 566.6	7.9	42.8	1 617.3
	Unlisted	2 906.5	13.4	32.5	2 952.5
Insurance technical reserves
	Reserves of pension funds and life offices	1 994.9	29.7	38.6	2 063.2
	General insurance prepayments and reserves	103.7	2.9	-	106.6
- nil or rounded to zero (including null cells)

Total deposits increased $51.6b (2.3%) in June quarter 2016, recording 18 quarters of consecutive growth, with net transactions of $43.6b and a valuation increase of $8.0b. The increase in total deposits was driven by growth in both transferable deposits (3.2%) and other deposits (1.9%). Transferable deposit growth was driven by other private non-financial corporations ($8.6b), rest of world ($5.9b), and households ($5.4b) depositing with banks. Rest of world ($12.1b) and households ($8.1b) depositing into banks were the main drivers of growth in other deposits.

Bonds increased $50.6b with net transactions of $14.3b and revaluations of $36.3b in June quarter 2016. Net transactions were driven by issuances in the domestic market ($13.0b). Net transactions in bonds issued in Australia were driven by net issuances from securitisers ($12.4b) and national general government ($5.7b), offset by central borrowing authorities (-$7.7b). Revaluation increases were recorded in both domestic ($17.6b) and offshore markets ($18.8b). Main drivers of this revaluation increase were banks ($9.8b), national general government ($8.8b), rest of world ($8.6b), and other private non-financial corporations ($4.9b).

The loan market increased $59.9b (1.6%) following two subdued quarters with net transactions of $49.4b. Net transactions during June quarter 2016 were driven by long term loans ($40.9b), as households ($20.4b) and other private non-financial corporations ($4.5b) continue to increase loan borrowings from banks. Households borrowed a net $9.7b in long term loans from securitisers during the quarter.

The listed share market increased $50.7b in June quarter 2016, with net transactions of $7.9b and a valuation increase of $42.8b. Other private non-financial corporations shares recorded the largest valuation increase ($34.2b), followed by private non-financial investment funds ($7.6b) and non-money market financial investment funds ($7.6b). Bank shares (-$3.2b) recorded its second consecutive valuation decrease following a large decrease in the previous quarter (-$60.5b).