The banks did not hold off last week on issuing bonds guaranteed by the Australian government, as we had thought they might. Nevertheless, they appear to have paid a price for their haste, although only time will tell in that respect.In the domestic market A$6.3 billion of guaranteed bonds were issued with the CBA getting the ball rolling. The CBA raised A$2.2 billion, the largest single issue the market has seen, for five years at 120 basis points over swap. The CBA also raised A$500 million for three years, without a government guarantee, at 160 bps over bank bills. Suncorp was next to market, raising A$1.1 billion, its largest single issue. Suncorp paid 140 bps over swap for funds with a term to maturity of three years and four months and a government guarantee.National Australia Bank finished the week with a A$2.5 billion issue. The two tranche issue raised A$0.7 billion, floating for three years, at 100 bps over bank bills and A$1.8 billion, fixed for five years, at 120 bps over swap.Offshore the banks raised the equivalent of almost A$8 billion. ANZ, Westpac and Macquarie all chose to issue in the US s144A market. The two majors raised a total of US$2.75 billion for three years at mid-swaps plus 100 bps. As expected, this was wide of where the US banks have been funding: by as much as 15 bps. The ANZ also raised US$500 million for two years at a spread of 70 bps to Libor, up to 20 bps wide of where US banks have being issuing for the same term to maturity. Macquarie raised US$1.7 billion for five years at mid-swaps plus 160 bps and the CBA raised ¥20 billion for five years at Libor plus 80 bps.