Risk aversion continued to reign in global financial markets last week and was reflected in modest activity levels in our domestic debt markets - leaving aside ANZ's bumper unguaranteed issue. The highlight last week was Bank of Queensland's upsized RMBS issue via Series 2010-1 REDS Trust.While demand wasn't at the same level as for AMP's RMBS issue a couple of weeks earlier, it was still upsized from A$500 million to A$850 million. And the Australian Office of Financial Management was a more significant participant this time, taking up A$250 million of the Class A securities. This compares with purchasing only A$36 million of Class AB notes in AMP's issue. Nevertheless, Bank of Queensland was able to sell A$786 million of Class A notes at 130 basis points over bank bills - the same as AMP - but was able to price its A$51 million Class AB tranche five basis points tighter at 175 bps over bank bills.While our Treasurer, Wayne Swan, was warning last week that the RMBS market will never return to what it was, issuance for the first two months of this year already totals A$1.85 billion. For the first two months of 2009 the total was nil.Issuance across the domestic securitisation market, as a whole, for the last two years has averaged A$15.3 billion. This year that figure should be doubled.