FINANCIAL MARKET SUMMARY

SELECTED FINANCIAL INSTRUMENTS

		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Mar Qtr 2017	Jun Qtr 2017	Jun Qtr 2017	Jun Qtr 2017
		$b	$b	$b	$b
Currency and deposits
	Currency	77.7	0.6	-	78.3
	Transferable deposits	807.2	32.8	-0.3	839.7
	Other deposits	1 591.0	29.6	-0.6	1 620.0
Short term debt securities
	Bills of exchange	51.0	-2.6	-	48.4
	One name paper	438.7	12.4	0.1	451.2
Long term debt securities
	Bonds, etc.	2 368.0	-2.1	7.3	2 373.2
Derivatives
	Derivatives	441.2	-30.7	56.6	467.1
Loans and placements
	Short term	334.8	11.7	1.3	347.7
	Long term	3 524.3	52.8	-1.9	3 575.2
Shares and other equity
	Listed	1 818.8	7.6	-49.2	1 777.2
	Unlisted	3 114.4	14.3	68.2	3 196.9
Insurance technical reserves
	Reserves of pension funds and life offices	2 239.9	55.1	42.1	2 337.1
	General insurance prepayments and reserves	106.6	0.8	-	107.3
- nil or rounded to zero (including null cells)

Total deposits increased $61.5b in June quarter 2017 recording 22 consecutive quarters of growth, with net transactions of $62.4b and a valuation decrease of $0.9b. The increase in total deposits was driven by transactions in transferable deposits of $32.8b. The main contributors to these transactions were deposits accepted by banks ($24.7b) and the rest of world ($8.2b). Deposits accepted by central bank ($15.0b) and the rest of the world ($11.7b) were the main contributors to the $29.6b increase in transactions in other deposits.

Bonds increased $5.2b, with revaluations of $7.3b offset by net maturity of $2.1b in June quarter 2017. Net transactions were driven by issuance in the domestic market of $2.8b partially offsetting net maturity of $4.9b in the offshore market. Positive revaluations were observed in the offshore market, driven primarily by the Australian dollar depreciating against major currencies over the quarter. Bonds issued offshore by banks was the main driver for the revaluation increase ($6.3b).

The loans and placement market increased $63.9b in June quarter 2017, with net transactions of $64.5b and revaluations of -$0.6b. Net transactions during June quarter 2017 were driven by long term loans, with continued household borrowing of $36.7b and other private non-financial corporations $6.0b. Short term loan transactions were driven by increased placement's of $8.4b by state and local general government.

The listed share market decreased 2.3% in June quarter 2017, with net transactions of $7.6b and a valuation decrease of $49.2b. This is the first decrease in the listed share market since March quarter 2016. Banks and other private non-financial corporations shares recorded the largest valuation decreases, with -$39.1b and -$12.9b respectively.