SOFR Holds Near 3.88% as Fed Funds Rate Stays Flat

The one-basis-point drift in SOFR while the effective fed funds rate held flat is a reminder that the two benchmarks, though nominally aligned, can diverge at the margin as repo-market conditions shift. For anyone tracking the transition away from dollar Libor or managing SOFR-linked exposure, the spread between secured and unsecured overnight rates is the signal worth watching, since it reflects funding pressure rather than policy stance. Whether this minor gap widens or compresses in the sessions ahead is the open question.