SOFR Rises to 3.90% From 3.89%; Fed Funds Rate Holds at 3.88%

The one-basis-point move in SOFR is noise, but the spread it implies over the effective fed funds rate is the detail worth noting: repo funding continues to print marginally above the administered bank rate. That relationship matters for anyone borrowing against collateral, since it feeds into the cost of leverage across funding markets. Whether that modest premium persists or compresses back toward the fed funds rate is the open question.