Compagnie de Financement Foncier (CFF) is expected to launch the first benchmark covered bond of the week tomorrow (Wednesday), after having this afternoon announced a mandate for a 10 year euro obligations foncières.

The French bank has mandated Commerzbank, Lloyds, Natixis, Nykredit and UBS.

The market experienced heavy supply in the first two weeks of the year, but the first two days of this week saw no new benchmarks after four deals met modest demand last Wednesday, and syndicate officials also cited weak market sentiment at the start of this week as having persuading issuers to hold off.

However, a syndicate official at one of CFF’s leads said issuance conditions looked more favourable after a day of stability in the broader market, and said the 10 year euro benchmark issue will be launched tomorrow, subject to market conditions.

The lead syndicate official saw CFF January 2025s quoted at 8bp, mid, and May 2024s at 7bp. He also cited ABN Amro January 2026s at 11bp.

CFF issued five benchmark covered bonds last year, the most recent a Eu1.25bn five year on 20 October.