National Australia Bank is in the market with a US dollar-denominated benchmark covered bond that is set to be priced later this (Wednesday) afternoon, after Toronto-Dominion Bank sold a $1.75bn five year on Monday, and with euros quiet pre-ECB.

NAB leads Citi, HSBC, NAB and TD launched the Australian bank’s five year deal with initial price thoughts of the 100bp over mid-swaps area. The deal will be priced after the US open.

The deal is the second dollar benchmark for an Australian issuer this year, following a $1.35bn (Eu1.22bn, A$1.81bn) five year for Westpac that was priced at 98bp on 18 February and was seen trading at around re-offer today.

Toronto-Dominion on Monday sold the only dollar benchmark covered bond since Westpac’s issue, with the Canadian pricing a $1.75bn five year at 95bp over mid-swaps, which was seen at 94bp, bid, today.

A syndicate official away from the leads said that if the deal were to be priced at a spread of 98bp this would be equivalent to 28.5bp over euro mid-swaps, and estimated that an equivalent euro deal would be priced at 29bp-30bp.

“For NAB the markets offer very comparable levels at the moment,” he said.

Syndicate officials said the window for euro-denominated issuance has probably closed for this week, with issuers unlikely to tap the covered bond market tomorrow (Thursday) morning ahead of an ECB meeting in the afternoon, at which president Mario Draghi is expected to announce new QE measures.