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Macro

SOFR Holds at 3.88% on Oct 2 Nonfarm Payrolls Day, Fed Funds Steady

The secured overnight financing rate (SOFR) came in at 3.88% for the October 2 trading session, a nonfarm payrolls day, up from 3.87% the prior day. The effective federal funds rate was unchanged at 3.88% for the same session, matching the previous day’s level.

Original source

AI take

The quiet detail here is the gap: SOFR and the effective funds rate are sitting at the same level, so the repo market is not signaling any funding stress even through a payrolls session, when balance-sheet and settlement flows often push overnight rates around. For anyone tracking the front end of the curve or collateral costs, that alignment is the useful read — the two benchmarks are telling the same story rather than diverging. Whether that parity persists after the payrolls data works through dealer balance sheets is the open question.

Generated by AI for reference only.

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