Reserve Bank of Australia financial markets' head, Guy Debelle, cautioned financial markets not to over-react to APRA's recent listing of assets that satisfy new Basel III liquidity rules.Kangaroo bonds were sold off after the 28 February announcement that no Kangaroo issues would qualify as "high-quality liquid assets" under the new Basel rules. In particular, the market was surprised that $A-denominated bonds from supranational and sovereign agencies (SSAs) would not qualify. Only commonwealth and semi-government securities would meet the rules, APRA said.But in a speech yesterday, Debelle pointed out that the RBA will offer a liquidity facility to meet the shortfall between the available high-quality liquid assets and the total of liquid assets that banks need to hold under Basel III rules.Debelle said the operation of this facility meant there was no reason why the rules should change relative demand for different classes of securities. The new system "should affect all asset classes equally and should not affect their relative attractiveness", he said.To the extent that banks held SSAs today, he said, "they should still hold them in the future".