Westpac Banking Corporation is launching a five year dollar benchmark today (Monday), while Mediobanca and Yorkshire Building Society are expected in euros tomorrow with Eu500m no-grow 10 and seven year transactions, respectively, after having announced mandates.

Westpac is in the market with an initial level of the 80bp over mid-swaps area for its five year benchmark, with Citi, HSBC, Morgan Stanley, RBC and Westpac as joint leads.

Royal Bank of Canada priced a $1.75bn (Eu1.59bn) five year covered bond at 72bp over mid-swaps on 6 October and according to a banker away from Westpac’s leads this was bid at around 79bp over today. Kookmin meanwhile on 14 October sold a $500m five year debut that was the first issue under South Korean covered bond legislation, at 90bp over mid-swaps, and a secured, jointly guaranteed issue from Goldman Sachs and Sumitomo Mitsui vehicle SumitG was priced at the same level last Wednesday.

Westpac’s last fixed rate dollar benchmark was a $1.5bn (A$2.1bn) five year trade in February at 41bp over mid-swaps, although it sold a $300m three year FRN at 30bp over Libor in July. The last Australian dollar benchmark was a $1bn five year for Commonwealth Bank of Australia at 45bp over mid-swaps in July.

In euros, covered bond bankers said that the market remains open after a modest three benchmarks hit the market last week for Eu2.5bn.

“They have all traded well and conditions feel pretty conducive,” said a banker away from today’s mandates.

A syndicate official involved in one of the pending euro benchmarks said that the tone is much more constructive than two weeks ago, when spreads were under pressure while only modestly subscribed heavy supply was hitting the market.

“Since the end of the week before last things are more settled and stable,” he said, “which is one of the reasons people are now looking again.

“The reason for this improvement is obvious,” he added, “namely the ECB’s promise to throw new buckets of money at the market.”

Mediobanca is set to launch its Eu500m no-grow 10 year deal tomorrow via leads Commerzbank, Mediobanca, Natixis and UniCredit.

According to a syndicate official at one of the leads, Mediobanca 2019s were quoted at around 15bp over mid-swaps today and 2023s at 24bp over. Italy’s UBI Banca sold a Eu750m January 2023 OBG on 20 October at 36bp over mid-swaps and this was said to be at the same level today – Banca Monte dei Paschi di Siena on the same day sold a Eu750m January 2022 issue at 85bp over mid-swaps.

Yorkshire Building Society is due with a Eu500m (£356m) no-grow seven year benchmark after having mandated Danske, DZ, HSBC and UBS. The UK issuer’s last euro benchmark was a Eu500m five year in June, which was priced at 4bp over mid-swaps.

The last UK euro benchmark was a Eu1bn seven year deal for Nationwide Building Society, which was priced on 19 October at 20bp over mid-swaps. This was said by a banker at one of Yorkshire’s leads to be bid at 17bp-18bp over today, while Yorkshire’s five year deal from June was bid at 12bp over.

A syndicate official said that market conditions are appropriate for more supply to come this week – and given that issuers such as Deutsche Apotheker- und Ärztebank (apoBank) have finished roadshows.

“But tonnes of issuers are done for the year,” he added. “So it is a question of finding an issuer who still needs to do something.”