Treasury secretary Ken Henry spelt out yesterday his assessment of allegations that the Reserve Bank had raised concerns about the Federal Government's unlimited guarantee for bank deposits.

At times angry and agitated, the senior bureaucrat was grilled by Opposition senators when he appeared before the estimates committee.

One Liberal senator questioned Dr Henry's truthfulness during the fiery and prolonged hearing, with committee chairwoman Senator Annette Hurley struggling to maintain order during some exchanges.

The brouhaha was sparked by a report that Reserve Bank governor Glenn Stevens had voiced reservations about the Government's unlimited guarantee on bank deposits.

Dr Henry said the article was ''just plain wrong'' and ''not helpful''.

That remark prompted Liberal senator Helen Coonan to interject, ''but it may be right''.

Dr Henry's denial was emphatic. ''The members of the committee may think that's a matter of some mirth ...

''That is to say, and I'll say it again, the story on the front page of ... [The] Australian newspaper was wrong - that's W-R-O-N-G, exclamation mark.''

Undeterred, Liberal senators pressed on with questions about the governor's views on the banking measure.

Senator Coonan asked, ''Did Mr Stevens raise with you, Dr Henry, his strong concerns about market distortion if an uncapped guarantee was put in place?''

Dr Henry a veteran of Senate estimates hearings made an unusual move.

''Whilst I would not normally entertain questions such as this one, and in my 24 years of appearances before these committees never have, I think on this occasion there probably is a public interest in my confirming that in respect of the advice that was tendered to the Government, and that supported the decision that it took on Sunday the 12th of October, Mr Stevens and I were of one mind,'' he said.

The Opposition continued its line of inquiry, making only slight changes to the content of its questions.