SOFR Falls to 3.88% as Fed Funds Rate Holds at 3.88%

The two benchmarks sitting at the same level is the notable part: SOFR is a secured, Treasury-collateralised rate, so its convergence with the unsecured fed funds rate suggests collateral is not commanding much of a premium right now. That matters for anyone pricing floating-rate exposure tied to SOFR, since the spread between the two is the input that usually carries the signal. Whether SOFR stays at or below the funds rate, or drifts back to its typical premium, is the open question worth tracking.