Placement of unsecured bonds by banks totalled A$4 billion last week, helped by a global bond issue form Morgan Stanley and also featuring a finely priced deal from ANZ.For domestic banks, the A$1.5 billion, three-year floating rate bond priced by ANZ on Friday was the highlight. The FRNs were priced at 100 basis points over bank bills.With this spread, ANZ has set a new pricing benchmark that is tighter than recent new-issue levels seen from CBA (at 105 bps) and NAB (at 110 bps).Morgan Stanley, rated A-, sold A$1 billion in bonds at 416.25 bps over swap.Apart from its Stable Funding Note issue, reported last week, Rabo Australia placed A$225 million of one-year FRNs, paying a coupon of 62 bps over bank bills, last Monday.The Sydney branch of ING Bank (A+) raised A$100 million for one year, at 100bps over the 90-day bank bill rate.German development financier KfW added A$450 million to its May 2015 line, and KfW's top-up to A$2.65 billion was priced at 111 bps over CGS to give the lowest yield yet seen in the corporate bond market, at just 3.94 per cent.With yields as low as this, investors will be looking elsewhere for better returns, unless capital preservation remains critical.