The recent burst in Kangaroo issuances by supranational agencies came to a halt last week when the Australian Prudential Regulation Authority said that bonds from such issuers won't qualify as liquid assets under new Basel III liquidity rules. Yields on such bonds spiked higher because they are now deemed to be less attractive for banks and it remains to be seen whether the issuers will resume their borrowing with the same gusto as they did in the first few weeks of 2011. Meanwhile, banks dominated issuance in the local market. The Australia branch of the Royal Bank of Scotland issued A$1.7 billion via fixed and floating rate notes. A $1 billion floating rate tranche was issued at a spread of 195 basis points over swap, to yield 7.39 per cent, while the $700 million fixed-rate issue was issued at the same spread. The total issue was upsized from $500 million because of strong demand. NAB priced $700 million March 2018 fixed rate note at a spread of 145 points over swap or yield of 187.25 basis points over the 5.50 per cent January 2018 government bond. Commonwealth Property Office Fund issued $200 million of fixed rate notes, due March 2016, at a spread of 165 basis points over swap.  The company will use the proceeds to fund buyback of about $157 million of June 2011 notes and to pay down existing bank debt facilities. In the overseas market, Commonwealth Bank priced a NOK500 million (Norwegian crown) fixed rate four-year bond maturing December 2015 at 4.625 per cent. And, in New Zealand, Wellington City Council raised NZ$25 million via May 2016 floating rate notes at a spread of 100 basis points over three-month FRA settlement.