Australia’s ANZ is today (Tuesday) marketing a three year US dollar benchmark covered bond, The Covered Bond Report understands, which represents the first Yankee supply since July.

ANZ, Citi and Morgan Stanley are understood to have the mandate, which is said to have been announced in time to collect Asian interest before a focus on the US market today, as investors return from a long Labor Day weekend.

Syndicate bankers away from the leads reported the 65bp over mid-swaps area in connection with ANZ’s deal.

One syndicate official said that the level seemed “spot-on” given where comparables are trading. An ANZ 2016 issue is quoted around 60bp over swaps, he said, which could explain why some might consider the 65bp over area to be cheap, although in his view it is fair.

Other syndicate bankers away from the new issue project put the euro mid-swap equivalent spread at between 3bp through and 2bp over, which one said the issuer would probably not quite be able to achieve in the euro market.

The last US dollar benchmark covered bond was a $2bn dual tranche three year issue for Australia’s Westpac that hit the market in early July. It was split between a $1.5bn three year fixed rate tranche that was priced at 80bp over mid-swaps, and a $500m three year FRN that came at 80bp over three month Libor.