Auctions slow issuance, but supply to continue

Following a record week for covered bonds, a further four deals priced on Monday with Dexia Kommunal Bank, NordLB, LBBW and CM-CIC all coming to the market with benchmark transactions. There was no primary issuance on Tuesday as issuers looked to the impending sovereign auctions in Portugal and Spain, although Eurohypo today opened books on a five year deal. Banco Popolare and Swedbank are monitoring the market and there a number of other irons in the fire with rumours that La Caixa and Sabadell could be poised to mandate. Read EuroWeek on Friday to find out how primary market activity unfolds this week.