Euro benchmark activity is expected to resume as early as next week, according to some bankers, who said that at least two issuers, including one from the Benelux, are eyeing the market to launch deals in the first half of next week, which would be the first new supply in almost seven weeks.

There has been no new euro benchmark issuance for over six weeks, with the last, a €500m five year from South Korea’s Kookmin Bank, being launched on 8 July. The last CBPP3-eligible benchmark, a €500m eight year from Berlin Hyp, was launched over seven weeks ago, on 30 June.

One syndicate banker said two to three euro benchmarks could be launched next week, including an issue from the Benelux. However, he noted that there is still generally a relaxed sentiment across issuers towards approaching the market, with a handful of names more expectant than others.

“There will be a start next week,” he said, “but not a full-blown opening.”

The Benelux issuer is unlikely to launch its transaction on Monday or as an intraday process, according the syndicate banker.

“The window is open and it’s not that crowded,” he added, “so it will probably be intraweek – why should they rush out?”

Another syndicate banker said he is hopeful the market will reopen next week.

“From what I’m hearing, there could be some activity in covered bonds next week,” he said. “I don’t know if it will be as early as Monday, but there’s one more core European name and one that isn’t necessarily core that are looking.

“I would imagine they could easily do it Monday into Tuesday, or even Monday intraday if they wanted to – they clearly won’t wait until Thursday.”

The Benelux issuer could launch its transaction in the seven to eight year maturity bracket, according to the first syndicate banker.

“It’s not a big name,” he said, “so they might not think a 10 year is for them, so I’d guess seven to eight – but they should do 10 if you ask me, because that’s where the market will be best.”

He suggested sub-10 year issues may have to pay a slightly higher new issue premium than previously anticipated.

“Longer maturities are still fine,” he added, “but less than seven years, you get the feeling that we are so tight and so negative in yield that no one can say for sure that you can do a €500m very close to secondaries – we don’t know.”