Australian banks may be able to begin issuing covered bonds during the first quarter of 2010, a Treasury official told an industry conference held in Sydney yesterday.John Lonsdale told the Insto Covered Bonds Congress that the Government was likely to introduce a bill into Parliament in November. Treasury published an exposure draft of the bill in March.Covered bonds are an alternative means, other than securitisation, of dedicating pools of home loans to back investment in the term debt of banks.Banks had hoped that covered bonds would provide a cheaper and more reliable means of selling bonds, especially in offshore markets.The New Zealand subsidiaries of Australian banks already have clearance to sell covered bonds, and two banks (Bank of New Zealand and Westpac) have done so. ANZ considered doing so but deferred a covered bond issue.