Syndicate officials do not expect euro benchmark supply this week, with a long bank holiday in the UK preventing preparation for an issuance window today (Wednesday) and central bank meetings, another public holiday, and a Spanish auction clogging up the rest of the week.

Mariano Rajoy, Spanish prime minister

Syndicate bankers said that today would have been the only day on which to launch a deal, with conditions on the positive side for the first time, as illustrated somewhat by the Bund coming down from record highs. However, the moment has passed as a deal would have needed to have already been “lit up” yesterday (Tuesday), said another. Monday and Tuesday were bank holidays in the UK.

And with the Governing Council of the European Central Bank meeting today, a public holiday in parts of Germany and other continental European countries tomorrow (Thursday), and Spain due to auction up to Eu2bn of government bonds as the country reaches out for help recapitalising its banks, syndicate bankers said they do not expect any euro benchmark covered bond supply to hit the market this week.

“I would be surprised to see anything,” said one. “We’re done for the week.”

Another banker said that the biggest periphery test is Spain’s sale of 2022 Bonos.

Finance ministers of the G7 held an emergency telephone meeting yesterday to discuss ways of dealing with the euro-zone sovereign debt crisis, while Spain’s prime minister Mariano Rajoy urged EU-level action on the crisis via the creation of a banking union and issuance of euro-zone bonds.

Norway’s Terra BoligKreditt has nonetheless begun a covered bond roadshow, working with Commerzbank, Nordea, UBS and UniCredit.