It was a very quiet week for issuance activity in domestic debt markets. The highlight of the week would have to have been the return of kangaroo issuer and German state agency, KfW, with a $150 million top-up to its January 2012 line. The top-up priced at 75 bps over swap and takes outstandings to $1.4 billion. KfW last added $250 million to the line in January 2008 at a margin of 17 bps under swap, which just goes to show how credit spreads have moved in the meantime, if we needed any reminding. The last kangaroo issue seen in the market was a $90 million top-up from Municipality Finance Plc in early August last year. The top-up to its April 2011 line was a private placement and so no pricing was disclosed.Insto reported that KfW's top-up was prompted by an order from an offshore investor, a recent tightening in high-grade kangaroo credit spreads and favourable movement in basis swaps. Reuters data suggests the euro-Australian dollar basis swap would result in a cost of funds to KfW of around Libor plus 25 bps. With the Australian Office of Financial Management recently declaring that it intends to sell its holdings of similar kangaroo issues, it is hard to imagine that KfW's top-up will lead to a revival in the sector.