Late on Friday, Commonwealth Bank advised market participants that it and National Australia Bank had been mandated by the trustee of the Local Government Funding Vehicle (rated AA) to engage investors on a potential ten-year bond issue. Indicative pricing was given as 145 basis points to 150 bps.LGFV is the funding vehicle for the 79 Victorian councils that form the Municipal Association of Victoria.  CBA went on to say that the launch of any bond issue would be subject to market conditions and investor feedback. At first glance, this seems like a fairly standard sort of release but why send it out late on a Friday before a long weekend? The indicative pricing is also curious. Again, at first glance, it seems reasonable. LGFV is AA rated and it has issued only once before, when it debuted in November 2014. Therefore, the bonds would be sought-after for portfolio diversification reasons.However, a quick check of the secondary trading levels for the existing bonds reveals that the November 2019 bond is marked at 125 bps on the Yieldbroker rate sheet issued at the close on Friday, and the November 2021 is marked at 142.5 bps. Even at the wide end of the range 7.5 bps doesn't appear to be much of a pick-up for an extra five years of exposure.Of course, the alternative view is that the two existing bonds are bargains, and the spreads will be quickly marked in this morning.