Syndicate officials said that there were no signs today (Monday) that the summer lull would be broken by a euro benchmark covered bond ahead of an expected resumption of primary market activity next week, even if Goldman Sachs surprised with a senior unsecured euro deal.

The US investment bank launched a seven year deal with initial price thoughts of the 115bp over mid-swaps area, with the primary FIG market otherwise bereft of supply.

“The Goldman seven year was a bit of a surprise, as nothing was expected until next week,” said a syndicate banker. “There will be a few interested glances in that direction, but apart from that it seems like the depths of summer. It is very quiet, with very limited activity, and we do not know of anything imminent.”

This was not for want of attractive conditions, said another banker, who said an early move to issue would make sense.

“I wouldn’t be surprised to see someone do something,” he said, “given the very strong tone to the market. Spreads are getting to very low levels, if not the lowest of the year. I don’t see why issuers that are able to do something – i.e. who are out of their black-outs – shouldn’t come early if they are thinking about a September deal.

“The broad market opened a bit weaker today, with equities softer, but nothing that is of great concern.”

Indeed syndicate officials noted that there had been no negative headlines recently to disrupt the market and there were no clear risks ahead, with German elections in September cited as the first potential pitfall on the horizon.

With this in mind, next week is seen as the likely time for the primary market to reopen.

“I would not be surprised to see the second wave of supply coming earlier than September,” said another syndicate official. “I can imagine that many issuers are thinking of coming ahead of the pack and given that the last week of August is possible, anyone wanting to be the very first to issue would be looking at next week.

“I don’t think there is anything concrete yet,” he added, “but things could develop quickly. The periphery is trading pretty tight and there is no bad news coming out of the financial sector, and with the politicians away there is no negative news from them.”