Australia’s Westpac was the only issuer out with a new covered bond this (Monday) morning as other financial institutions took advantage of an opportunity to tap the senior unsecured market on the back of a rally triggered by measures agreed at an EU summit last week.

Following on from a dual tranche senior unsecured deal for Nordea on Friday, fellow Nordic issuers Danske Bank and Svenska Handelsbanken were out with three year issues, Société Générale sold a three year and 10 year dual tranche deal, and BPCE reopened a September 2015 transaction.

Including Nordea’s deal, last week was the first time in a while that senior unsecured supply exceeded covered bond benchmark issuance, noted a syndicate official.

Another said the focus will be on the senior unsecured market this week.

“Issuers will want to make the most of this window,” he said. “The Nordea trade opened the door and it makes sense for issuers to try to access the market in senior unsecured while they can.”

Another syndicate banker said the covered bond pipeline was thin, with many issuers well funded and/or not in a rush to come to market.

Westpac Banking Corporation was out with its second euro benchmark, a seven year issue that leads BNP Paribas, HSBC, UBS and Westpac will price at 55bp over mid-swaps, in line with guidance of the 55bp over mid-swaps area. This follows initial price thoughts at the same level. More than Eu1bn of orders were placed for the issue, according to a lead syndicate banker.

Some syndicate bankers said the pricing was in line with the market and their expectations. Westpac does not yet have a euro curve, having only sold one benchmark, a February 2016 issue, but a syndicate official said he would see the issuer has having come roughly flat to secondary market levels, or with a marginal new issue premium.

Another thought the pricing was punchy, however, based on Westpac’s outstanding euro benchmark and secondary market spreads for other Australian euro benchmarks, such as a Commonwealth Bank of Australia 2017 deal, with the curve between five and seven years fairly steep.

“The market has rallied a lot and that’s enticing issuers, but we’re over the half year hump so investors may be looking to load up,” he said. “Fingers crossed it goes well.”

Another noted that although there is “more juice” on offer in the senior unsecured market today, Westpac’s deal should go well given its lack of exposure to the situation in Europe.

Westpac last came to the euro market in February, selling a Eu1.75bn short four year at 72bp over mid-swaps.

Norway’s SpareBank 1 Boligkreditt on Friday added Eu250m to a Eu1bn 2.375% November benchmark. Barclays and BNP Paribas priced the tap, which is said to be the issuer’s first of a euro benchmark, at 27bp over mid-swaps.

The increase takes SpareBank 1’s benchmark covered bond funding to just short of Eu2.5bn equivalent for 2012 across the US dollar and euro markets.