Yesterday, AMP Bank priced its latest issue of mortgage backed securities, Progress 2011-1 Trust, paying 100 basis points over the bank bill swap rate for the A$676.8 million class A1 tranche. The tight pricing will cheer the market, which has seen some spread blowout on recent issues. Resimac paid 125 basis points over swap for the class A tranche of its Premier Series 2011-1 issue earlier this month, and Citibank paid 115 basis points over swap for the class A notes of its issue in April.The class A1 notes were rated AAA and have a weighted average life of 2.8 years. The $188 million of class A2 notes, which were rated AAA and have a weighted average life of 5.8 years, were priced at 115 basis points over the swap rate.The $47 million of class AB notes, which were rated AAA and have a weighted average life of 5.8 years, were priced at 175 points over swap.Pricing on the AA-rated B1 and B2 notes was not disclosed.AMP Bank said, in a statement yesterday, that 16 investors bought notes. The deal was upsized from $500 million to $940 million.The Australian Office of Financial Management supported the deal, buying $138 million of the class A2 notes.