The Australian banks were by far and away the largest issuers in the domestic corporate bond market and in international markets, relative to other Australian issuers, in 2008. Domestic issuance by banks totalled $32.8 billion, compared with only $10.8 billion in 2007, and accounted for 64 per cent of total issuance. International issuance amounted to the equivalent of $81.6 billion, compared with only $46.8 billion in 2007, and accounted for 83 per cent of total Australian issuance.Almost 20 per cent of the issuance by the banks in the domestic and international markets took place in December, when the banks were able to issue with the benefit of a Commonwealth government guarantee. And with this support effectively available only from the second week of December, issuance was kept up right through to the end of the month.Since our last Monday commentary on debt capital markets (two Mondays before Christmas) Westpac has added a total of US$900 million to its newly established December 2011, s144A line, to take outstandings to US$2.4 billion. Similarly, ANZ has added another US$650 million and US$200 million to its December 2011 and December 2010, s144A lines, respectively. Both Westpac and ANZ were able to add to their December 2011 lines at margins around 10 basis points tighter than the 100 bps where they originally issued.Macquarie Group raised a further US$1.2 billion in the same market, with a very short January 2010 maturity.National Australia Bank, ANZ and Westpac took the opportunity to issue five-year notes denominated in Japanese yen, off their Euro medium term note programs. The notes were issued relatively cheaply but in small volumes. ANZ raised Â¥12.5 billion (approximately $200 million), Westpac raised Â¥11.9 billion at Libor plus 83 bps and NAB raised Â¥11.0 billion floating, and Â¥4.0 billion fixed, at 80 bps over Libor/swap.NAB also took the opportunity to issue US-dollar denominated, three-year bonds, to raise US$555 million and Westpac tapped the Hong Kong dollar market for a total of HK$403 million, for three years, and HK$280 million, for five years - a little more than $125 million, all up.None of the banks issued any more bonds in the domestic market but the Australian branch of the Royal Bank of Scotland surprised by issuing $1.175 billion of twelve-month notes. RBS availed itself of a Commonwealth government guarantee to issue $525 million of floating rate notes at 60 bps over bank bills but also issued $550 million of bonds and a further $100 million of FRNs without a guarantee. These notes were priced at 130 bps over swap/bank bills.    The additional bond issuance since last reporting results in 2008 totals for the domestic market and international Australian issuance of $51.2 billion and $98.3 billion, respectively.