Sparkasse KölnBonn is set to roadshow a Eu500m deal and Kreissparkasse Köln to launch a Eu250m eight year next week, but although bankers said conditions today (Monday) are more accommodating, headlines on Greece and public holidays are expected to curb activity this week.

Sparkasse KölnBonn will next week begin its roadshow for the Eu500m no-grow deal, for which the tenor has not yet been selected. Barclays, DekaBank, Helaba, Natixis and UniCredit are the leads.

Sparkasse KölnBonn’s most recent euro benchmark issue was a Eu500m 10 year, sold in October 2014. The issuer launched another Eu500m deal, a seven year, in April 2013.

Meanwhile, Kreissparkasse Köln will this week market a Eu250m eight year deal, which is expected to be launched next week. The deal will be sole-led, with WGZ and LBBW in the selling group.

A syndicate official at one of the participating banks noted that the issuer’s 2022 paper was quoted at mid-swaps minus 12bp to 11bp, mid. He saw fair value for the new issue at minus 10bp or 9bp.

After Bund yields backed up dramatically last week, resulting in market volatility, bankers cited relatively stable market conditions today as being more accommodative of primary market activity.

A syndicate official said that while equities and credit indices were slightly weaker today, 10 year Bunds had widened only 2bp.

“This means that issuers can actually think about returning to the market,” he said.

Another banker noted that the covered bond market still appeared to be resilient to wider weakness.

“In covered bonds there has been no widening worth mentioning,” he said. “The cash market is still moving but I don’t think another day like Thursday is on the cards just yet, at least.”

However, bankers said the window for issuance this week would be limited to Tuesday and Wednesday, with some jurisdictions on public holiday for Ascension Day on Thursday.

“Quite a few issuers are also in blackout, and that on top of the hurly-burly we had last week will make things difficult,” said one. “I think we are heading for another very quiet week.”

Another banker agreed, adding that negative headlines on Greece emerging from a Eurogroup meeting today could persuade issuers to hold off.

“So there are a lot of factors that will make primary market activity more difficult, even though the market is in better shape,” he said.